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2022 (7) TMI 546 - AT - Income TaxRectification u/s 154 - excess claim of deduction u/s. 80IB and 80IC needs to be disallowed - allocation of corporate overhead to tax holiday units - HELD THAT:- AO passed the order on 04.01.2016 u/s.154 and he disallowed the excess claim of deduction in respect of Yanam unit and Baddi Unit. The assessee is running four units, which are eligible for deduction/exemptions as per u/s.10B, 80IB and 80IC. Assessee has vehemently submitted that there was a debatable issue to which the rectification cannot be made u/s 154 is not acceptable because, the corporate expenditures are not related only for the corporate office, the expenditure are relating to the controlling and managing of the entire business of the assessee, whether it is a exempted unit or non exempted unit. Therefore, the expenditures should be apportioned among the all business units of the assessee for true computation of the taxable profit. The assessee has not apportioned but the revenue authorities consistently apportioned the corporate expenditures. The assessee have four units out of which in two units, the assessee has not allocated the corporate expenditures. Considering the entire set of facts, we observed that there was no debatable issue involving in this case. Accordingly, the order passed by the AO is correct as per section 154 - Respectfully following the above judgment of the Coordinate Bench [2017 (1) TMI 1390 - ITAT HYDERABAD] in assessee's own case, the alternate plea of the assessee is accepted. Accordingly, we direct to the AO for disallowances of excess claim of deduction of exempted units has to be calculated as per para No.64 cited (supra). Accordingly, the appeal of the assessee is partly allowed.
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