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2014 (1) TMI 1226 - AT - Income TaxDeduction granted u/s 10A of the Act – Failure to produce FIRCs – Held that:- CIT(A) held that The AO had not given even one week time to the assessee to produce FIRCs and the same was produced before the CIT(A) - The claim was duly examined by the CIT(A) and found correct – thus, the AO directed to grant the deduction after due verification of the FIRCs - The CIT(A) has given a categorical finding that the assessee has produced the FIRCs from the Bank to show that the funds have been brought into India in convertible foreign exchange – Revenue is not able to controvert the finding of the CIT(A) – order of the CIT(A) upheld – Decided against Revenue. Disallowance of vehicle maintenance and general expenses – Disallowance of conveyance and travelling expenses - Held that:- The assessee is a public limited company whose accounts are audited by statutory auditors and approved by its General Body and there cannot be any expenditure of personal nature - Unless and until the AO points out any specific discrepancy on the expenses incurred by the assessee, any amount on this count cannot be disallowed – the order of the CIT(A) reversed – Decided in favour of Assessee. Withdrawal of deduction granted u/s 10A as per section 154 of the Act - Whether the deduction granted to the assessee u/s. 10A can be be withdrawn u/s. 154 on the reason that the assessee filed return of income belatedly – Held that:- Relying upon ACIT vs. Dhir Global Industries (P) Ltd [2010 (7) TMI 619 - ITAT, DELHI] – An issue when it is debatable, it cannot be dealt with by the proceedings u/s. 154 of the Act - The AO in his order u/s. 154 of the Act is very much debatable and a debatable issue cannot be considered in the proceedings u/s. 154 of the Act – thus, the CIT(A) is justified in annulling the order u/s. 154 of the Act – Decided against Revenue.
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