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2020 (3) TMI 121 - AT - Income TaxDeduction u/s 80IC - expenses related to generator, electricity expenses - manufacturing provided in section 2(29BA) - HELD THAT:- In the instant case, section 80IA(8) and 80IA(10) are relevant to find out the reason of the abnormal profit and examine whether the assessee has shifted profit or expenditure to eligible business or to any other business carried on by the assessee or shifted profit or expenditure to any other person. CIT(A) in impugned order has mentioned that the AO has not commented in remand report on this issue. CIT(A), however, on the basis of the financial statements and discussion with the Authorized Representative of the assessee held that there was no other business which was carried out by the assessee company and, therefore, there was no reason to go into the issue of deriving more than ordinary profit which might be expected to arise in the eligible business. CIT(A) did not call for report or comment from the AO on the specific submission of Authorized Representative. Application of section 80-IA(8) and 80-IA(10), CIT(A) was required to examine all the expenses incurred by the assessee for ascertaining shifting of any expenses to any other business of the assessee or to any other concern. From the finding of the CIT(A), it cannot be ascertained that he has examined the expenses as per the requirement of the section 80IA(8) or 80IA(10). CIT(A) is having coterminous power of the Assessing Officer, and thus, he was required to examine this issue thoroughly. In view of the facts of the circumstances of the case and in the interest of the substantial justice, we feel it appropriate to restore this issue back to the file of the Assessing Officer for deciding applicability of section 80IA(8) and 80IA(10) of the Act over the affairs of the assessee. The grounds raised by the Revenue in both the appeals are accordingly allowed for statistical purposes
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