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2016 (11) TMI 452 - AT - Income TaxClaim of deduction u/s 10AA disallowed - retrospective amendment effect - Held that:- By the virtue of the retrospective amendment, instead of ₹ 2000 (total turnover) being taken for the computation of deductible export profits, ₹ 500 (total turnover of the undertaking) is to be taken. This means that the eligible profits for deduction will be ₹ 100 and not ₹ 25. Now by the retrospective amendment to Section 10AA (7) by the Finance Act 2010 the benefit conferred on to the assessee from 1/4/2010 has been made applicable from 1/4/2006 and shall apply to Assessment Year 2007-08 also. The assessee had made payment of ₹ 84,38,357/- as professional and legal charges in relation to taking over the business from Hindustan Motors Ltd incurred during Assessment Year 2006-07. As the expenditure was incurred for the purpose of acquiring a capital asset it was not claimed as revenue expenditure by the assessee. The said professional charges were disallowed by the Assessing Officer but CIT(A) in its finding correctly held that if there is a retrospective amendment then authority with whom the matter is pending becomes legally duty bound to follow the amendment in letter and spirit. Thus, the CIT(A) allowed the additional ground and directed the Assessing Officer to grant the relief u/s 10AA of the Act. Depreciation claim on legal and professional charges - Held that:- The professional charges have to be allowed because the expenses incurred by the assessee was as per the agreement and it was not Hindustan Motors which was incurring the expenses. It actually forms the part of actual cost of the acquisition. Therefore, CIT(A) was right in allowing claim of depreciation
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