Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 640 - AT - Income TaxValidity of re-assessment u/s.147 - eligibility of entitlement of claim u/s.10A - Held that:- In the instant case the assessment was reopened within four years from the end of the relevant AY and there was a prima facie case of wrong deduction claimed by the assessee. This fact was not brought to the notice of the AO by the assessee at the time of original assessment proceedings u/s.143(3) and the AO also has not examined the eligibility of entitlement of deduct on u/s.10A. Therefore, we hold that the notice issued u/s.148 is valid and the order of the CIT(A) is upheld. The assessee’s appeal on this ground is dismissed Disallowance of claim made by the assessee u/s.10A - year of commencement reckoned - Held that:- From the plain reading amended section of Sec.10A, it is clear that the assessee is eligible for deduction u/s.10A for the period of 10 years from the date of commencement of production/ manufacture of articles/things for 10 consecutive AYs. It was also made it clear in section that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to deduction referred to in this sub-section only for the unexpired period of the aforesaid ten consecutive assessment years. The assessee is in existence from 1997-98 which had commenced production/manufacture of articles/things during the FY 1997-98 and exemption period of 10 years was ended with the AY 2007-08 and therefore for the AY under consideration, the assessee is not eligible for deduction u/s.10A as held by the Ld.CIT(A) in his order. - Decided against assessee.
|