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 →

Dy. Commissioner of Income Tax, Circle 1 (1) , Hyderabad Versus A.P. Industrial Infrastructure Corporation Ltd

2015 (10) TMI 250 - ITAT HYDERABAD

Claim of deduction u/s 80IAB disallowed - assessee has not made the claim in its original return of income, has not filed Form 10CCB alongwith the return of income and has not maintained separate books of accounts - Held that:- As regards the first objection, we find that it is not sustainable as the assessee had filed a revised return of income in which the claim u/s 80IAB was made. According to the AO, the revised return was barred by limitation, but the fact that he has acted upon it by accep .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssment proceedings. In the case before us, the the assessee has filed Form No.10CCB on the last date of hearing due to which AO could not have verified the same to appreciate the correctness of the claim.

As regards the third objection, we find that the CIT (A) has relied on section 80IA(10) dealing with similar provisions as section 80IAB to hold that the AO in computing the profit and gains of the eligible business for the purpose of the deductions u/s 80IA, can take the amounts of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on without examining whether the assessee satisfies the conditions prescribed thereunder. Therefore, for verification as to whether the assessee satisfied the conditions u/s 80IA(10) of the Act and for computation of deduction u/s 80IAB of the Act, we deem it fit and proper to remand the issue to the file of the AO. - Decided in favour of assessee for statistical purposes.

Disallowance of the interest paid to NTPC u/s 40(a)(ia) - non deduction of TDS - CIT(A) deleted the disallowance .....

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. from the date from which sub clause (ia) of section 40(a)(ia) was inserted by the Finance Act, 2004. Respectfully following the said decision of the Tribunal on the legal issue about the retrospective effect of the amended provisions of section 40(a)(ia), we see no reason to interfere with the order of the CIT (A)who has taken note of amendment to section 201 and section 40(a)(ia) made by the Finance Act of 2012 w.e.f. 1.4.2013 to the effect that the said provisions would not apply, if the p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rayana Murty ORDER Per Smt.P. Madhavi Devi, J.M. Both are Revenue appeals for the A.Y 2009-10 and 2010-11 against the order of the CIT (A)-II, Hyderabad, dated 29.10.2013. ITA No.1806/Hyd/2013 - A.Y 2009-10 2. Brief facts of the case are that the assessee company, a State Public Sector Undertaking, was in the business of development, operation and maintenance of industrial estates in the state of Andhra Pradesh. Assessee filed its e-return of income on 30.09.2009 admitting a taxable income of &# .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ime permitted and therefore, is legally invalid. However, since the assessee disclosed higher income as per the revised computation, he considered it for the purpose of determination of the taxable income. AO observed that in the revised return, assessee has claimed deduction of ₹ 53,88,807 u/s 80IAB of the Act towards income from notified SEZ. He observed that assessee has not made the claim u/s 80IAB in the original return of income. He also observed that the assessee has filed Form 10CC .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee has debited an amount of ₹ 5,28,06,794 as interest paid to NTPC and that the assessee has not made deduction of tax at source u/s 192A of the Act. AO, therefore, proposed to disallow the claim u/s 40(a)(ia) of the Act. Assessee, however, replied that the role of the assessee was limited to acting as a mediator only and thus it was a back to back arrangement against interest income receivable from VIWSCO, which in turn was payable to NTPC. AO however, was not convinced with the assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ditions. Against the relief granted by the CIT (A), the Revenue is in appeal before us. 3. The ld DR, while supporting the order of the AO, submitted that the CIT (A) has granted relief to the assessee u/s 80IAB of the Act, even though (i) assessee has not made the claim in its original return of income and (ii) the assessee has not filed form No.10CCB alongwith the revised return of income in which the assessee has made the claim. He further submitted that Rule 18BBB prescribes that the audited .....

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 facts of the case before us. As regards the issue of interest expenditure disallowed u/s 40(a)(ia) of the Act for non deduction of tax at source, the ld DR supported the orders of the AO and submitted that the CIT (A) has applied the amended provisions of section 40(a)(ia) of the Act to the facts of the case, even though such provision was applicable prospectively and was not applicable to the year before us. He submitted that the CIT (A) ought not to have considered that NTPC has offered the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

No.10CCB alongwith the return of income was only a technical requirement and the assessee had filed the same before the AO though on the last date of hearing. He submitted that inspite of observing that it was a belated return, by taking into account the taxable income returned in the revised return of income, AO has accepted the same and therefore, it was a valid return. Therefore, according to him, the AO was wrong in saying that the assessee s claim is not allowable because it was not made in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee submitted that Form No.10CCB is certified by the Chartered Accountant, based on the audited accounts and therefore, there is sufficient compliance in order to make the claim. 6. Having regard to the rival contentions and material on record, we find that the assessee s claim of deduction u/s 80IAB was disallowed on the following grounds: i) That assessee has not made the claim in its original return of income; ii) That the assessee has not filed Form 10CCB alongwith the return of income; an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aim of the assessee u/s 80IAB of the Act. As regards the second objection that Form 10CCB was not filed along with the return of income, we find that Rule 18BBB required that Form 10CCB be filed along with the return of income, we are of the opinion that it would also fulfil the requirement if it is filed before completion of the assessment proceedings. In the case before us, the the assessee has filed Form No.10CCB on the last date of hearing due to which AO could not have verified the same to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, the AO shall compute the deduction on a reasonable basis provided the business transacted between eligible business and any other person produces to the assessee more than the ordinary profits which might be expected to arise in such eligible business. In the case before us, the CIT (A) has simply applied the said provision without examining whether the assessee satisfies the conditions prescribed thereunder. Therefore, though we agree with the order of the CIT (A) that the assessee s claim u/ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

est paid to NTPC u/s 40(a)(ia), we find that the assessee is a Nodal Agency and the loans are routed through the assessee. Visakhapatnam Industrial Water Supply Company Ltd (WIWSCO) has taken a loan of ₹ 350 crores in financial year 2004-05 from NTPC, VMC and RINL of ₹ 50 crores, 60 crores and 240 crores respectively and the interest was agreed to be charged @ 10% on the above loan amount. It is also observed that the interest receivable and interest payable are both reflected in the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vant previous year, the assessee was required to deduct tax at source while making the payment to NTPC. He submitted that in order to avoid unnecessary complications, assessee had requested VIWSCO to operate directly with the lenders and that for the relevant A.Y NTPC had already offered the interest receipt in its books of accounts. We find that the assessee had furnished a certificate from the Managing Director of NTPC to this effect. We find that the CIT (A) has taken note of amendment to sec .....

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
  ↓     bird's eye view     ↓  


|| 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