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2017 (12) TMI 922 - AT - Income TaxExpenditure incurred on ESOP - revenue or capital - Held that:- This issue is now covered in favor of the assessee by the decision of the Special Bench of the Tribubal at Bangaluru in the case of Biocon Ltd., Vs. DCIT reported in [2013 (8) TMI 629 - ITAT BANGALORE] wherein the expenditure incurred on ESOP has been held to be revenue in nature, and the CIT(A) has followed the said decision to grant relief to the assessee Delay in Employee’s contribution to PF - Held that:- We find that undisputedly, the employee’s contribution to PF has been paid with the delay of ten days only, but before the due date of filing of the return. In a number of cases, this Bench of the Tribunal has considered all the decisions relevant to the issue, both u/s 43B as well as 36(1)(va) r.w.s 2(24)(x) of the Act, including the decisions relied upon by the Ld. DR, and has held that both the contributions are allowable if they are paid before the due date of filing of the return of income u/s 139(1) of the Act ALP determination - TPA - Held that:- CIT(A) has called for a remand report from the A.O and on the basis of said remand report and subsequent reply of the assessee to the remand report, he has confirmed the TP study of the assessee. This approach of the CIT(A), in our opinion, is not correct. Since the assessee has filed the TP documentation before the CIT(A), he ought to have referred the matter to the file of the TPO for determination of the ALP. Since, it is also pointed out by the assessee that there are mistakes in the margins of the comparables, we deem it fit and proper to remand the issue to the file of the AO/TPO for fresh determination of the ALP in accordance with law. Deduction u/s 10A - certificate required u/s.10A(5) of the Act having not been filed along with the return – Held that:- We find that the Hon’ble Karnataka High Court, in the case of American Data Solutions India Pvt Ltd.[2014 (2) TMI 128 - KARNATAKA HIGH COURT ] was considering the case of an assessee, which had filed Form No. 56F before the CIT(A), who granted relief to the assessee after giving opportunity to the assessee. On an appeal by the Revenue, the Hon’ble High Court held that the proceedings before the First Appellate Authority is continuation of assessment process and the audit report though was not produced before the assessing authority, the lower appellate authority was duty bound to take note of the said audit report and grant benefit, if the assessee is entitled to. We find that in the case before us, the A.O has not held that the assessee has not fulfilled the other conditions prescribed u/s 10A of the IT Act. It is also not in dispute that the Form No. 56F has been filed before the A.O with a delay. The assessee has filed the additional evidence in support of the deduction u/s 10A of the Act. We are inclined to admit the same and remand to the file of the A.O with a direction to allow the deduction u/s 10A of the Act in accordance with law after verifying if the assessee satisfies all other conditions u/s 10A
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