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2016 (11) TMI 452 - ITAT DELHI

2016 (11) TMI 452 - ITAT DELHI - TMI - Claim of deduction u/s 10AA disallowed - retrospective amendment effect - Held that:- By the virtue of the retrospective amendment, instead of ₹ 2000 (total turnover) being taken for the computation of deductible export profits, ₹ 500 (total turnover of the undertaking) is to be taken. This means that the eligible profits for deduction will be ₹ 100 and not ₹ 25. Now by the retrospective amendment to Section 10AA (7) by the Finance A .....

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essional charges were disallowed by the Assessing Officer but CIT(A) in its finding correctly held that if there is a retrospective amendment then authority with whom the matter is pending becomes legally duty bound to follow the amendment in letter and spirit. Thus, the CIT(A) allowed the additional ground and directed the Assessing Officer to grant the relief u/s 10AA of the Act. - Depreciation claim on legal and professional charges - Held that:- The professional charges have to be allowe .....

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poor, Adv ORDER Per Suchitra Kamble, JM This appeal is filed by the Revenue against the order dated 6/9/2013 passed by CIT(A)-V, New Delhi. 2. The grounds of appeal are as follows:- 1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in admitting and allowing the additional grounds of appeal in respect of disallowance of deduction of ₹ 5,75,82,474/-, u/s 10AA of the IT Act, as against claim of ₹ 14,83,714/- made by the assessee and allowed by A.O. .....

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e Income Tax Act, 1961 was made at ₹ 14,83,714/-. A revised return was filed on 31/3/2009 and the claim of deduction u/s 10AA of the Income Tax Act, 1961 was revised at ₹ 5,90,65,188/-. This claim in the revised return was made on the basis of the speech of Hon ble Finance Minister on 24/2/2009 while having discussion on the budget in Lok Sabha and replying to a query. On the basis the speech and since the company did not want to loose its claim of deduction u/s 10AA of the Income Ta .....

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eduction u/s 10AA of the Income Tax Act, 1961 but since the amendment came w.e.f 1/4/2010 the revised return and revised claim of the assessee u/s 10AA of the Income Tax Act, 1961 was not allowed by the A.O. Before the amendment brought in by the Finance Act, 2009, the position of law was that the profit derived by the unit for which 10AA of the Income Tax Act, 1961 was being claimed was to be allowed in the same proportion that the export turnover had to the total turnover of the assessee. For .....

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igible profits for deduction will be ₹ 100 and not ₹ 25. Now by the retrospective amendment to Section 10AA (7) by the Finance Act 2010 the benefit conferred on to the assessee from 1/4/2010 has been made applicable from 1/4/2006 and shall apply to Assessment Year 2007-08 also. 6. The assessee had made payment of ₹ 84,38,357/- as professional and legal charges in relation to taking over the business from Hindustan Motors Ltd incurred during Assessment Year 2006-07. As the expen .....

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e Assessing Officer to grant the relief u/s 10AA of the Act. 8. As relates to legal and professional charges, the CIT(A) held that incurring of legal and professional charges by the assessee were not in dispute. These charges were essential for effecting the takeover of business units of Hindustan Motors. Thus, it actually forms the part of actual cost of the acquisition of the assessee. Therefore, claim of depreciation was allowed by CIT(A). 9. The Ld. DR submitted that the additional ground ad .....

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