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2015 (7) TMI 831 - AT - Income TaxAllocation of expenses of the Non-10A unit to the 10A unit - Minimum Alternate Tax (MAT) on SEZ units - Salary & Bonus Expenses allocated in the ratio of turnover of both the units - Held that:- AO has very scientifically allocated the expenditure of the Non-10A unit to the 10A unit. The assessee had also agreed for allocation of expenditure of Non-10A unit to 10A unit on proportionate basis. The grievance of the assessee that the allocation was on higher side does not seem to be justified. However, so far the contention of the Ld. A.R. that the assessee had already debited the interest expenditure allocable to the 10A unit and that the further apportionment of interest expenditure from that of Non-10A unit was not justified is concerned, we restore this issue to the file of the AO for this limited purpose with a direction to examine as to whether the assessee has itself allocated the interest expenditure towards 10A unit out of the interest expenditure allocated by the AO from Non-10A unit to 10A unit, if found correct, then to take it into consideration and decide accordingly. - Decided partly in favour of assessee for statistical purposes. Disallowance u/s 40(a)(ia) paid to Star India Pvt. Ltd. on account of advertisement - Held that:- Assessee while drawing our attention to the page 76 of the paper book, has submitted that a certificate dated 31.05.07 u/s 197 of the Income Tax Act has been issued in favour of Star Ltd., therefore there was no requirement of deduction of TDS for the sums paid by the assessee to the Star Ltd. Admittedly, the above stated document was not presented by the assessee before the AO at the time of assessment proceedings. This document is the shape of additional evidence and is required to be examined by the AO. We accordingly, restore this issue to the file of the AO for verification as to whether the assessee was not required to deduct TDS for the payments made to Star Ltd. and if found correct, the AO to give relief accordingly.- Decided in favour of assessee for statistical purposes. Setting-off the losses of non SEZ unit with the profit of SEZ unit for the purpose of determining deduction U/s 10A - Held that:- This issue is squarely covered with the decision of Hon’ble Bombay High Court in the case of "CIT vs. Black & Veatch Consulting Pvt. Ltd.” (2012 (4) TMI 450 - BOMBAY HIGH COURT ) wherein held that the deduction under section 10A has to be given at the stage when the profits and gains of business are computed in the first instance and thus the brought forward unabsorbed depreciation of the unit which is not eligible for deduction u/s 10A cannot be set off against current profit of the eligible unit for computing the deduction under section 10A. - Decided in favour of the assessee. Not reducing deduction available u/s 10A of the Income Tax Act, 1961 from the book profit for the purpose of determining total income U/s 115JB - Held that:- This issue is also covered by the decision of the co-ordinate Bench of the Tribunal in the case of "Genesys International Corpn. Ltd. vs. ACIT” [2012 (12) TMI 491 - ITAT MUMBAI] wherein observed that by the SEZ Act, sub-section (6) to section 115JB was also inserted providing that provisions of section 115JB shall not apply to the income accrued or arisen on or after 1.4.2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be. Hence, income of units located SEZ will not be included while computing book profit for the purpose of MAT as per section 115JB(6) of the Act.- Decided in favor of assessee.
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