TMI Blog2012 (10) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue or point; but the disallowance was made by the AO and confirmed by the CIT(A) on the very same point. For exercising the jurisdictional u/s 254(2), it is the mandatory condition that such mistake should be wide apparent, manifest and patent and not something which could be involved serious circumstances of disputes of question of facts or law and can be established by long drawn process and reasoning on the point to be rectified. Therefore, the Tribunal has no power to review its order passed on merit and in the grab of rectification of mistake no order can be passed u/s 254(2) which amounts to reversal of the order passed after discussing all the facts and statutory provisions in detail. Issue decides in favour of revenue. - ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in the case of Godrej Boyce Mfg Co Ltd vs ACIT reported in 328 ITR 81(Bom) and the Commissioner of Income Tax(Appeals) has directed the Assessing Officer to make the reasonable disallowance u/s 14A in accordance with the decision of the Hon ble Jurisdictional High Court (supra); therefore, we do not find any reason to interfere with the order of the Commissioner of Income Tax(Appeals), qua this issue. 3.3 As the assessee has raised a point that no direct or indirect expense has been incurred to earn the exempt income; therefore, the Assessing Officer, is directed to take into consideration the contention of the assessee while deciding the issue. 4 The second mistake as alleged by the assessee in the Miscellaneous Applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of I Gate Global Solutions Ltd (supra). 5.1 The ld AR has reiterated the submissions as made during the hearing of the appeal and submitted that the issue is covered by the decision of the Bangalore Benches of the Tribunal in the case of I Gate Global Solutions Ltd (supra). 5.2 On the other hand, the ld DR has submitted that the Tribunal has already considered all the contentions as well as the relevant facts on the issue and therefore, the decision of the Tribunal cannot be reviewed in the present proceedings. 5.3 The main grievance of the assessee, as raised in the Miscellaneous Application on the issue of disallowance of deduction u/s 10A is that the Tribunal has decided the issue against the assessee on a different and fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come being not derived from the software development activity does not qualify for deduction u/s 10A. As a mater of fact, the availability of deduction u/s 10A to be undertaking has prompted assessee to make such variation in the income knowing fully well that it has no impact on the tax. In the light of aforesaid discussion and having regard to the precedence in assesse s own case, I decline to entertain assessee s claim of deduction u/s 10A on this additional income of ₹ 4,94,97,317/-. Proceedings u/s 271(1)( c) are initiated as the assessee has committed default within the meaning of that section. 5.4 We further note that the Commissioner of Income Tax(Appeals) has confirmed the disallowance on similar reasons in para 3.3.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in I-Gate Global \Solutions Ltd. (supra), the Tribunal held that if the assessee itself discloses income at ALP, which is more than the price shown in the book, it is not a case of enhancement within the meaning of proviso to section 92C(4). Due to determination of ALP by the assessee at a higher figure, and the assessee will be entitled to exemption under section bA, on such declared income. The Tribunal was not concerned with the issue as to whether the conditions specified under section 1OA, were fulfilled by the assessee or not. In the case on hand, the assessee has not complied with the provisions of section 10A, to the tune of income by way of adjustment of ALP. In fact, the assessee enhanced its income, not by making adjustment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he previous year in which the undertaking began to manufacture or produce such articles or things or computer software) in such free trade zone or export processing zone: (Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be ninety per cent of the profits and gains derived by an undertaking from the export of such articles or things or computer software: Provided also that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the 1st day of April, 2012 and subsequent years. 51. The C.LT (A) at page 6 para 3. 3.4 of his order for assessment year 2006-07, held that the income arising out of the adjustment is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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