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2019 (7) TMI 665 - AT - Income TaxDeduction u/s 80IC - @ 30% or 100% claimed by the appellant - substantial expansion - initial assessment year - HELD THAT:- As decided in assessee's own case [2019 (5) TMI 941 - ITAT CHANDIGARH] Tribunal passed in relation to the eligibility of deduction @ 100% u/s 80IC of the Act was in respect of the 7th year from the start / operation of manufacturing activity of the assessee. The findings given above are applicable for the assessment year under consideration also being the 8th year as it has been held that the assessee will be eligible for deduction @ 100% on account of substantial expansion subject to the condition that the total period of deduction u/s 80IC would not exceed to 10 years.In view of this, this issue is decided in favour of the assessee. Disallowance u/s 14A - disallowance out of interest expenditure u/s 36(1)(iii) - HELD THAT:- The assessee is eligible for claim of 100% deduction on its income from eligible business for the year under consideration. Hence, the aforesaid additions will not have any tax bearing in view of our findings given above. Hence, ground Nos. 2 & 3 of the appeal have become infructuous. Disallowance of deduction u/s 80IC of Misc. Income - HELD THAT:- Assessee has explained before us that out of the misc. income of ₹ 2,81,825/-, a sum of ₹ 1,37,649/- is on account of discounts and deductions which relates to the business activity of the assessee and was part of the business income. A sum of ₹ 53,229/- was received on account of insurance claim, the expenditure related to which was debited in the earlier years. The insurance claim received by the assessee to indemnify the losses would go on to enhance the business income of the assessee. Further, the balance sum of ₹ 90,945/- was received by the assessee on account of return of cheques of membership subscription paid to the association. It was nothing but the refund of the amount already paid and claimed as expenditure. In view of this, the misc. receipt of ₹ 2,81,825/- is held to be income relating to the business activity of the assessee and thus eligible for deduction u/s 80IC of the Act.
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