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2019 (12) TMI 758 - AT - Income TaxClaim of deduction u/s. 10B/10A - first appellate authority power to entertain a fresh claim of deduction not been made before the Assessing Officer - Whether deduction u/s. 10A shall not be admissible unless the assessee furnishes Form No. 56F along with the return of income and the report of an accountant as specified? - assessee made an alternative claim of deduction u/s.10A of the Act by filing a revised return but the same has not been entertained by the AO as there was no consistency in the claim of deduction and not supported by recognized certification - HELD THAT:- C IT(A) held that the assessee is eligible for deduction u/s. 10A of the Act and he relied on the judgment of the Delhi High Court in the case of CIT vs Technovate E Solutions P Ltd [2013 (3) TMI 372 - DELHI HIGH COURT] Considering the fact that the assessee itself had claimed two different amounts for the deduction to be allowed u/s 10A and the Assessing Officer also had mentioned in the remand report submitted about change in the turnover subsequent to the order passed u/s 263, the Assessing Officer was directed to work out the claim of deduction to be allowed u/s 10A afresh in accordance with the Act. Accordingly, the CIT(A) allowed the appeal of the assessee. Eligible for alternate claim of deduction u/s. 10A - No such claim was made by the appellant in the return of income filed and this was not raised as an additional ground/claim but as an alternative claim before the appellate authority, where as a claim for deduction u/s. 10B was already mad ein the return of income - HELD THAT:- As decided in M/S FLYTXT TECHNOLOGY P. LTD. [2017 (10) TMI 872 - KERALA HIGH COURT] no reason to think that the Tribunal has committed an illegality by directing the Assessing Officer to decide the matter afresh duly adverting to the claim of the assessee for the benefit of Section 10A. Ground relating to entertaining a new claim of deduction u/s. 10A - There is no bar to entertain such claim by the CIT(A) otherwise than by filing a revised return as held by the Supreme Court of India in the case of Goetze (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT] Disallowance of interest on diverted fund - HELD THAT:- Even if disallowance is made towards notional interest on account of diversion of funds to the sister concerns, it is of no consequence since the assessee’s income is exempted u/s. 10A of the I.T. Act.
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