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 →

The Dy. Commissioner of Income-tax, Corporate Circle 2 (2) , Chennai Versus M/s HTC Global Services (India) Pvt. Ltd

2016 (1) TMI 219 - ITAT CHENNAI

Exclusion of overseas travel and communication expenditure incurred in foreign currency from the total turnover for the purpose of deduction u/s 10B - Held that:- This issue is squarely covered by the order of the Chennai Special Bench in the case of ITO vs Sak Soft Ltd, [2009 (3) TMI 243 - ITAT MADRAS-D] wherein it was held that when any such amount is deducted from the export turnover from the numerator, the same shall also be deducted from the total turnover in the denominator while applying .....

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 not applicable for determining book profits under section 115JB of the Act. - I.T.A.No.1703/Mds/2015, C.O.No.100/Mds/2015 - Dated:- 16-10-2015 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER For The Department : Shri A.V. Sreekanth, JCIT For The Assessee : Shri V. Tharish, CA ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER This appeal of the Revenue and the cross objection of the assessee are directed against the order of the Commissioner of Income-tax (Appeals)-6 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unt is deducted from the export turnover from the numerator, the same shall also be deducted from the total turnover in the denominator while applying the formula (Profit X Export turnover ÷ Total turnover) as provided under the Act. 4. In view of the above, we are inclined to dismiss the ground taken by the Revenue. Accordingly, the Revenue s appeal is dismissed. 5. In the cross objection, the assessee has taken ground Nos. 1.1 and 1.2 in support of the order of the CIT(A) against which .....

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 Power Co. Ltd. in I.T.A.No.312/Mds/2013, and vide order dated 21.8.2013 the Tribunal has observed as follows: 13. We have heard both sides, perused the material on record and gone through the orders of authorities below. The case of the Revenue is that whether addition to the book profit shall be made on account of alleged expenditure incurred to earn exempt income while computing the income under section 115JB of the Act. In the case of Goetze (India) Ltd. v. CIT (supra), the Delhi Bench 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

by the assessee in relation to income which does not form part of the total income under this Act. Since we are dealing with the issue of expenditure relating to dividend income, a matter falling under Chapter III, it becomes clear on perusal of these two provisions that they are similar in nature. Clause (f) uses the words "expenditure relatable to any income", while s. 14A uses the words "expenditure incurred by the assessee in relation to income". These words have the same .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed by the learned CIT(A) was more than the dividend income. We find that this argument is inconsequential for the reason that expenditure incurred in earning an income may at times be more than the income itself, say, in case of an industrial company in the first year of its operation when large amount of depreciation is claimed for deduction or when large amount of advertisement expenditure is incurred, such cases may result into loss, which can also happen in the case of dividend income where .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

framed under sub-s. (2) of s. 14A, which is not applicable while interpreting cl. (f) of the Explanation. 14. In the case of Quippo Telecom Infrastructure Ltd. v. ACIT (supra), the Tribunal has observed that no addition to the book profit shall be made on account of alleged expenditure incurred to earn exempt income while computing the income under section 115JB of the Act. Therefore, we, respectfully following the decision of the Coordinate Bench of Delhi ITAT in the case of Goetze (India) Ltd .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

& Financial Services Ltd. and the Tribunal in ITA No.870/Chd/2013 relating to assessment year 2010 -11 vide order dated 6.6.2014 held as under: 5. We have heard the rival contentions and perused the record. The issue arising in the present appeal is in relation to computation of book profits under section 115JB. The Assessing Officer while computing the book profits had added back disallowance worked out under section 14A of the Act to the net profits of the business. The plea of 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

ection 115JB of the Act in view of readjustment on account of disallowance under section 14A of the Act arose before the Tribunal in assessee s own case relating to assessment year 2008 09. The Tribunal in ITA No.1120/Chd/2011 vide order dated 27.7.2012 in turn relying on an earlier decision of the Chandigarh Bench of the Tribunal in DCIT Vs. Ind Swift Ltd. in ITA No.729/Chd/2009 relating to assessment year 2006 -07 - date of order 30.11.2009 held as under: 5. We have heard the rival contentions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Ind- Swift Ltd. (supra) where vide order dated 30.11.2009 vide para 8 it was held as under: 8. The ground 1(iv) raised by the Revenue is against the computation of book profits u/s 115 JB of the Act. The Assessing Officer while computing the book profit u/s 115JB of the Act had added back the disallowance worked u/s 14A of the I.T. Act to the net profit shown in the profit and loss account and computed the profits for the year. The CIT (A) reworked the book profits by excluding the said notional .....

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