Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 510 - AT - Income TaxAdjustment of brought forward loss and depreciation before allowing exemption under section 10B - Held that:- We direct the Assessing Officer to consider assessee’s claim of set–off / adjustment of unabsorbed depreciation and business loss keeping in view the decision of the Tribunal and Hon'ble Jurisdictional High Court in assessee’s own case holding that unabsorbed depreciation and brought forward loss of non–eligible unit cannot be set–off against the current profit of eligible unit while computing deduction under section 10B. - Decided in favour of assessee Reallocating salary expenditure while computing deduction under section 10B - Held that:- It cannot be accepted that assessee has not incurred any expenditure towards salary and bonus in respect of Vapi Unit when admittedly, it must have maintained an administrative set up also for Vapi Unit. The contention of the learned counsel that salary and bonus of Vapi Unit have been included under the head “Personnel Cost” as shown in Schedule–11, neither appears to common sense nor logical as in that case, there is no need to show such expenditure separately for Dombivali Unit as the assessee has also claimed such expenditure in respect of Dombivali unit under Schedule–11 like Vapi Unit. Therefore, as the assessee has failed to demonstrate with convincing reason that no indirect expenditure on account of salary and bonus was incurred in respect of Vapi Unit, we uphold the view of the Departmental Authorities that salary expenditure has to be allocated to both the units on the basis of turnover. - Decided against assessee Assessment of interest income twice by the Assessing Officer - plea of the assessee that interest income has been assessed twice as part of the business income having shown by the assessee in the Profit & Loss account and again as income from other sources - Held that:- We think it appropriate to direct the Assessing Officer to verify assessee’s claim and decide the issue accordingly. We make it clear that the Assessing Officer while deciding the issue should bear in mind that the same income cannot be taxed twice. - Decided in favour of assessee by way or remand
|