Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 749 - ITAT CHENNAI

2016 (2) TMI 749 - ITAT CHENNAI - [2016] 46 ITR (Trib) 172 - Deduction under Section 10A - non filing of Return of income - Held that:- On perusal of the assessment order, it appears that for the assessment year 2006-07, the assessee filed return of income on 30.11.2006. It is not known what was the due date for filing return of income for the assessment year 2006-07. Similarly, for other assessment year also it is not clear from the orders of the lower authorities the due date for filing return .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Section 10A of the Act. If, for any reason, if the Assessing Officer came to a conclusion that the return of income was not filed under Section 139(1), then the assessee is not eligible for deduction under Section 10A of the Act. Therefore, for a limited purpose of verifying the due date for filing the return of income under Section 139(1) of the Act, the matter is remitted back to the file of the Assessing Officer.

Disallowance under Section 14A - CIT(A) allowed the claim - Held tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ention is not for earning the exempt income but because of commercial expediency. Therefore, as rightly found by the CIT(Appeals), the provisions of Section 14A would not be applicable for the assessment year 2006-07 and 2008-09. In view of this, we find no reason to interfere with the order of the CIT(Appeals) and accordingly, the same is confirmed. - Decided against revenue - ITA Nos. 2027, 2028, 2029 & 2030/Mds/2014 - Dated:- 22-1-2016 - N. R S Ganesan, JM And A Mohan Alankamony, AM For the A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ilind Madhukar Bhusari, the Ld. Departmental Representative, submitted that the first issue arises for consideration is with regard to deduction claimed by the assessee under Section 10A of the Income-tax Act, 1961 (in short 'the Act') According to the Ld. D.R., the assessee claimed deduction under Section 10A of the Act and the Commissioner granted the deduction by directing the Assessing Officer to reduce the foreign currency expenses from total turnover. According to the Ld. D.R., for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecting the Assessing Officer to allow the claim of deduction under Section 10A of the Act. 3. On the contrary, Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that the assessee filed the returns of income for the assessment years 2006-07 and 2010-11within the time specified under Section 139(1) of the Act. For the assessment years 2008-09 and 2009-10, the returns of income were not filed within the time specified under Section 139(1) of the Act. According to the Ld. counsel, wh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erefore, the Revenue may not have any grievance at all. 4. We have considered the rival submissions on either side and perused the relevant material available on record. In respect of foreign currency expenses, what is excluded in the export turnover has also to be excluded from total turnover. In other words, numerator and denominator should be of the same figure. Since the Assessing Officer has excluded from export turnover, the same has also to be excluded from total turnover. For the purpose .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion 10A of the Act. In fact, a Special Bench of this Tribunal at Rajkot in Saffire Garments v. ITO (2013) 140 ITD 6 examined this issue elaborately. By placing reliance on the judgment of Apex Court in Prakash Nath Khanna v. CIT (266 ITR 1) , the Special Bench found that 5th proviso to Section 10A is mandatory and not directory. The Special Bench further found that when one of the consequences for not filing return of income within the due date prescribed under Section 139(1) of the Act is manda .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Section 139(4) of the Act. This Tribunal is of the considered opinion that the return has to be necessarily filed under Section 139(1) of the Act. Therefore, when the return was not filed within the period specified under Section 139(1) of the Act, then naturally the assessee is not eligible to claim deduction under Section 10A of the Act. 5. The Ld.counsel for the assessee now claims that the returns of income for the assessment years 2006-07 and 2010-11 were filed within the due date. However, .....

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 under Section 139(1) of the Act specified by the CBDT. Therefore, the order of the CIT(Appeals) is set aside on this issue and the matter is remitted back to the file of the Assessing Officer to verify the due date for filing return of income under Section 139(1) for the respective assessment years. After verification, if the Assessing Officer found that the return of income was filed within the due date specified under Section 139(1), then the assessee is eligible for deduction under Section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessing Officer under Section 14A of the Act. 7. Dr. Milind Madhukar Bhusari, the Ld. Departmental Representative, submitted that the Assessing Officer found that the assessee has made investment in the shares and mutual funds, therefore, income from such investments does not form part of total income. Hence, according to the Ld. D.R., the expenditure related to earning the income was disallowed. However, the CIT(Appeals) deleted the addition made by the Assessing Officer. 8. On the contrary, Sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as emphasized that the object of the investment was not to earn the dividend income but for commercial expediency. 9. We have considered the rival submissions on either side and perused the relevant material available on record. Section 14A of the Act provides for disallowance of expenditure incurred by the assessee for earning the income which does not form part of total income. Rule 8D of the Income-tax Rules, 1962 provides for method of computation for disallowance. The CIT(Appeals), after co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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