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2014 (10) TMI 356 - ITAT DELHIDenial of deduction on revised return u/s 10A – setting up of new unit - separate and independent undertaking - revised return - The argument put forth was that the assessee had 13 “mother licenses” and the applications made for setting up new units were permitted by the STP Authorities who instead of issuing separate licenses granted permission on the existing “13 mother licenses” accordingly it was contended that as per the revised claim the 31 undertakings registered with STPI were eligible for deduction u/s 10A. - Revenue contended that only the assessee knows whether it was expansion or a new undertaking and having led the department to accept that it is an expansion it cannot now be allowed to insist that it should now be treated as a fresh undertaking having been set up 7 or 10 years ago as this would be a travesty of justice. Held that:- The assessee has attempted to seek exclusion of the units which were loss making units as a result of which the assessee has now sought to claim deduction of 275.56 crore odd instead of 257.24 crore odd which was originally claimed - having separate locations for the unit does not mean these separate expanded locations become separate undertaking as an undertaking in the STPI Zone even for expansion purpose can expand only if permission is granted by the STPI authorities which has been granted over the years and the assessee over the years has treated these expanded locations as expansions and only now in some cases after a lapse of five years or seven years and even in the last year would now want the department to re-look at the entire facts right from the first year of these expanded centres in order to ascertain whether five years or seven years ago or for that matter 10 years ago the expanded locations were capable of being called “independent stand alone units” as envisaged in Textiles Machineries case and other such decisions and orders. Relying on the findings recorded in the assessment order upheld by the DRP it has been contended that such an inquiry is difficult to make after so many years and even when enquired into it may not be possible to conclusively decided the same after so many years - The reasoning cannot be faulted with - the need and necessity for the same does not arise since it is the assessee who is the best judge of its internal affairs and it is the assessee who has consistently taken a decision as per facts exclusively available to it in its personal domain on the basis of which the assessee has chosen to treat the expanded units as part of the 13 units and we agree that referring to legal precedents will not change these accepted and settled facts. The authorities below have come to a correct conclusion as the claim now put forth by way of a revised return which have been rendered on facts peculiar to their own cannot be said to lay down a legally binding precedent that the same lay down a precedent based on which the assessee can resile from its stated position - The stated position being referred to herein does not refer to the filing of returns in one of two years but at times for 10 years; and 7 years and 5 years or so – Decided against assesse. Expenses incurred on earning of income – Income from other sources or not - Held that:- The DRP was of the view that outrightly the claim of the assessee could not be accepted being of the view that the said expenditure had only been culled out from the P&L A/c for separately claiming it as a deduction against the income from other sources – the expenditure would have already been debited in some head under the “P&L A/c” thus, unless the assessee showed that the said expenditure had not already been claimed under some other head of income the claim could not be allowed – there is no need to interfere in the order of the DRP – Decided against assesse.
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