Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Cybermate Infotek Ltd & Others Versus Asstt Commissioner Of Income Tax & Others

Claim of deduction u/s.10A - Held that:- this matter requires re-examination by the AO. It is stated that assessee was claiming 10A deduction in earlier years and as per the provisions, assessee is eligible for continuation of claim for a period of ten years. Therefore, it is necessary that the eligibility of assessee should be examined. As seen from the assessment order, the AO seems to have been carried away by the amount of claim made against export turnover and no other conditions/details se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Decided in favour of assesse for staitsical purposes.

Claim of capital work in progress - held that:- First of all, the entire amount of ₹ 6,75,96,165/- was disallowed by the AO, therefore question of enhancing the amount does not arise. The issue whether capital work in progress can be reduced or not was not an issue before the AO and this aspect was not examined at all. Since the AO put it to CIT(A), with reference to claim of ₹ 1,96,28,459/- and capital work in progre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t:- This claim also requires re-examination. Assessee's claim that amounts are originally offered as income, subsequently converted to equity of the subsidiary and written-off on the basis of the circulars of RBI requires examination by AO, as none of the figures are comparable on the basis of the annual reports filed before us. In order to examine the issue and to give one more opportunity to assessee to substantiate the claim, matter is restored to the file of AO with a direction to examine th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e purchases are on revenue account. Only for lack of proof of software purchase, AO disallowed the amount. The said proof was furnished before the Ld. CIT(A) which was also sent on Remand Report to the AO. We are surprised to see that Ld. CIT(A) directing the AO to treat as capital purchase which issue not all raised by AO nor by assessee. In view of this, we modify the order of CIT(A) and direct the AO to allow the amount as revenue expenditure..- Decided in favour of assesse.

Non de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y paid to overseas employees disallowed - Held that:- Before the Ld. CIT(A), assessee made detailed submissions and furnished various details including various contracts and man power employed organization-wise. This information was also sent to AO in the Remand Report. In view of this, CIT(A) was correctly of the opinion that the disallowance made by the AO is not warranted and accordingly deleted. - Decided against revenue. - ITA No.474/Hyd/2014, ITA No.631/Hyd/2014 - Dated:- 17-4-2015 - B Ram .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

various issues which are dealt, with after hearing the Ld. Counsel for assessee and Ld. DR for the Revenue. 2. Briefly stated, assessee filed return of income belatedly on 30-03- 2011 for AY.2009-10. AO selected the case for scrutiny and on the reason that assessee has not substantiated many of the claims and has not furnished complete details, made various disallowances as under: Rs. a. Disallowance of deduction under section 10A 6,75,96,165 b. Disallowance of investments written off 4,09,46,67 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e a relief on disallowance of overseas employees, business promotion expenses and consultancy charges. Revenue is aggrieved only on the disallowance of ₹ 3.3 Crores towards overseas employees. Ld CIT(A) also enhanced the income on which assessee objected not only on merits but also on not giving an opportunity before enhancing. These are considered issue-wise. I. Claim of deduction u/s.10A of the Act: 4. Assessee had an export turnover of ₹ 1.53 Crores and had arrived at the deductio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nnot be any claim of deduction u/s.10A at ₹ 6,75,96,165/- as against export turnover of ₹ 1.53 Crores. AO also gave a finding that all the pre-requisites for claiming deduction u/s.10A has not been fulfilled and FIRCs filed in support of the export turnover is not complete. Since, assessee claim is not substantiated, the entire amount of ₹ 6,75,96,165/- was disallowed and added to the total income returned. 4.1 Before the CIT(A), assessee submitted that this claim was wrongly s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al error and therefore restricted the disallowance to the amount of ₹ 1,53,00,444/-. 4.2 On considering the rival submissions and perusing the Paper Book on record, we are of the opinion that this matter requires re-examination by the AO. It is stated that assessee was claiming 10A deduction in earlier years and as per the provisions, assessee is eligible for continuation of claim for a period of ten years. Therefore, it is necessary that the eligibility of assessee should be examined. As .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

amine the eligibility of the claim and the amount claimed towards deduction, keeping in view the eligible unit and its profits as per the provisions of the Act. 4.3 Incidental to the above claim is the direction of CIT(A) to enhance the income by an amount of ₹ 6,75,96,165/- in the last para of the order, on the Remand Report sent by the AO. We are unable to understand the direction. First of all, the entire amount of ₹ 6,75,96,165/- was disallowed by the AO, therefore question of en .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in progress issue also requires re-examination. AO is directed to take the revised computation filed by the assessee and determine the exact amount claimed by assessee and why this claim was made and whether the claim can be allowed as per the provisions of the Act. For this purpose, this issue of claim of capital work in progress is also restored to the file of AO. Accordingly, Ground No. 2, 3, 8 and 9 of assessee's appeal are considered allowed for statistical purposes. II. Investment wri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n of the RBI was obtained to convert the outstanding amount into equity. Later on in view of the RBI's circular No.69 dt. 25-07-2011, 22.5% of the amount invested was written-off during the year. Since the amount was originally offered as income, non-receipt of the same was eligible as deduction u/s.37(1). After obtaining the Remand Report from the AO and also noted down the amounts remitted and capitalization of receivables, Ld. CIT(A) concluded that the write-off does not satisfy the condi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re-examination. Assessee's claim that amounts are originally offered as income, subsequently converted to equity of the subsidiary and written-off on the basis of the circulars of RBI requires examination by AO, as none of the figures are comparable on the basis of the annual reports filed before us. In order to examine the issue and to give one more opportunity to assessee to substantiate the claim, matter is restored to the file of AO with a direction to examine the factual aspect of the c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e balance amount as not substantiated. Before the Ld. CIT(A), assessee furnished all the vouchers which are listed in para 8.3. However, the Ld. CIT(A) treated the expenditure as capital expenditure and directed the AO to allow depreciation as per the schedules. Before us it was the contention that software purchased are not on capital account, but on revenue account in the business of software development and since vouchers are furnished before the CIT(A), which was also remanded to AO, the amo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

are surprised to see that Ld. CIT(A) directing the AO to treat as capital purchase which issue not all raised by AO nor by assessee. In view of this, we modify the order of CIT(A) and direct the AO to allow the amount as revenue expenditure. Ground No. 5 & 6 are allowed. IV. Issue of audit fee ₹ 1 Lakh: 7. AO noticed that assessee paid an amount of ₹ 1 Lakh on which TDS was not done. Invoking the provisions of Section 40(a)(ia) entire amount of ₹ 1 Lakh was disallowed. Befo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er the head 'salaries'. Out of which an amount of ₹ 3,32,00,000/- was towards salaries to overseas employees. On the reason that assessee do not have any branches in USA or UAE and further assessee failed to produce the details of the alleged salaries paid to the foreign employees, an amount of ₹ 3,32,00,000/- was disallowed by the AO. Before the Ld. CIT(A), assessee made detailed submissions and furnished various details including various contracts and man power employed org .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Notification: All Industry Rates of Duty Drawback Schedule

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer

Notification: Exempts inter-state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 08/2017-IT(R) to reduce CGST rate on specified supplies of Works Contract Services

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-CT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.

News: Tax on fuel more important for a dry state like Gujarat

Highlight: For an ayurvedic medicine to be classified under Chapter 30 has to pass the test whether it is for cure of any disease. If the same is only meant for care, then such product would not fall under medicament.

Highlight: Demand of interest - the period of limitation that applies to a claim for the principal amount should also apply to the claim of interest thereon.

Highlight: Government issues new notifications under CGST, IGST and UTGST to grant fresh exemptions in respect of certain supplies.

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117 of the Central Goods and Services Tax Rules, 2017

Forum: 3B mistake

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Manpower Service provider

Forum: Construction of single unit bungalow

Forum: Duty Drawback & Input Credit - under GST

Article: SIMPLIFIED E-WAY BILL UNDER GST

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version