Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 952 - HC - Income TaxDisallowance of deduction u/s 80-IA(8) - computation of the market value or electricity - Scope of expression “market value” in relation to any goods - ITAT justification in holding that the price at which State Electricity Board sells electricity to industrial consumer in representative of the price that electricity would ordinarily fetch in the open market in terms of section 80-IA(8) - HELD THAT:- We note that the issue would stand concluded in light of the judgment rendered [2024 (1) TMI 1252 - DELHI HIGH COURT] wherein as accepted the alternative plea of the assessee and remanded the matter with a direction to the Ld. AO to deduct the sale proceeds of those items from the cost of raw materials used in the manufacturing process and then accordingly determine the profit of the undertaking to allow the deduction under section 80 IB as per the revised profits so computed. TP Adjustment - Excessive remuneration to a related party - HELD THAT:- No disallowance in this regard have been made in the earlier years as held comparison done by the AO between the remuneration paid by the assessee company on account of managerial remuneration to Ms. Shallu Jindal with the remuneration paid by Essar Steel Ltd to Sh. Ashutosh Agarwala is not proper as well considering the facts that the assessee company is a profit making venture whereas Essar Steel Ltd. is incurring losses. It should also be noted that the assessee company has also complied with all the provisions of the Companies Act, 1956, relating to the payment of managerial remuneration to its managerial personnel appointed and the said payment of managerial remuneration has also been approved by the Board of Directors. The reference made to Circular No. 6P dated 08.07.1968 issued by the CBDT is apt in the present case. Thus, the Assessing Officer was not correct in making addition on account of managerial remuneration. Allocation of common expenses u/s 80-IA to eligible and non-eligible unit on the basis of ratio between eligible and non-eligible units - HELD THAT:- As decided in [2024 (1) TMI 1252 - DELHI HIGH COURT] from perusal of the Assessment Order/Order of the TPO/Directions of the DRP, in the present case none of the authorities have doubted that there was no expenses. In facts, the Assessing Officer/TPO/DRP re-allocated the expenditure in the ratio of turnover between eligible and non-eligible units without bringing into the light the flaw or inaccuracy or any suitable explanation involved in relation to the method of allocation adopted by the assessee company. Non deduction of TDS on bank guarantee commission u/s 40(a)(ia) - As decided by ITAT DRP has directed to delete the bank guarantee commission and without appreciating the same, the Assessing Officer made an addition which is unsustainable. Therefore, we direct the Assessing Officer to comply with the directions of the DRP and grant the relief to the Assessee. We find no justification to entertain the instant appeal on this solitary question.
|