Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

Latest Case Laws

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (2) TMI 505

ion u/s. 10A by totally ignoring the intention of the legislature to create different sections i.e. 10A and 10B, for claim of different deductions and further ignoring the fact that the conditions for claim of deduction under these two sections are distinguishable. - CIT(A)’s action in allowing the aforesaid claim is without appreciating the totality of facts and merit of the case and without giving proper justification for the fulfillment of the conditions as stipulated u/s. 10A. CIT(A) has obtained the Remand Report from the AO and the AO objected to the same, but Ld. CIT(A) has ignored the objections raised by the AO, which is contrary to the provisions of law and proves that Ld. CIT(A) in a hurry manner has passed the nonspeaking and laconic order. - It is true that requirement of stating reasons for judicial orders necessarily does not mean a very detailed or lengthy order, but there should be some reasoning recorded by the lower Authority for granting relief to the assessee. We are unable to find any infirmity in the arguments advanced on behalf of the Department, that no reasons have been recorded for allowing the claim of the assessee, this legal infirmity has, in .....

X X X X X X X

Full Text of the Document

X X X X X X X

lant craves the right to add, alter or amend any ground of appeal. 5. At the time of hearing, Ld. DR relied upon the order of the AO. First of all, she draw our attention towards the impugned order especially the finding of the Ld. CIT(A) at page no. 20 and stated that Ld. CIT(A) has wrongly allowed the alternate claim of deduction u/s. 10A of the Income Tax Act, 1961 (hereinafter referred as the Act) of ₹ 62,25,691/- ignoring the intention of the legislature to create different sections i.e. 10A and 10B of the Act, for claim of different deductions and further ignoring the fact that the conditions for claim of deduction under these two sections are distinguishable. She further stated that ld. CIT(A) has erred in allowing the aforesaid claim without appreciating the totality of facts and merit of the case and without giving proper justification for the fulfillment of the conditions as stipulated u/s. 10A of the Act. She further stated that Ld. CIT(A) has obtained the Remand Report from the AO and the AO objected to the same, however, the Ld. CIT(A) has ignored the same, which is contrary to the provisions of law and proves that that Ld. CIT(A) in a hurry manner has passed the .....

X X X X X X X

Full Text of the Document

X X X X X X X

vised computation of income claiming the deduction u/s. 10A of the I.T. Act in support of its claim that why the deduction if not allowed u/s. 10B, may be given u/s. 10A of the Income Tax Act, 1961. With regard to the claim according to the Circular No. 01/2013 dated 17.01.2013, the A.R. himself submitted that the issue in the Circular was different but the motive was same to grant deduction u/s. 10B to the assessee. In view of the above discussions, the assessee is not entitled to deduction, hence, the same is rejected. The deduction claimed u/s. 10B of the I.T. Act, 1961 at ₹ 62,25,691/- is disallowed and added to the income of the assessee……. Ld. CIT(A) s Finding ….In view of the above discussion respectfully following the decisions of the Hon ble Jurisdictional High Court of Delhi in the ITA No. 1295/2008 in the case of CIT vs. Mantec Consultants (P) Ltd. and in the case of CIT vs. Regency Creation Ltd. while denying the claim of exemption u/s. 10B of the appellant the Hon ble High Court modified its order dated 04.01.2013 wherein it has directed the Hon ble ITAT to examine whether the assessee in that case was entitled to the benefit of section 10A o .....

X X X X X X X

Full Text of the Document

X X X X X X X

ing for the assessment year beginning on the 1st day of April, 2012 and subsequent years. (1A) Notwithstanding anything contained in subsection (1), the deduction, in computing the total income of an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2003, in any special economic zone, shall be,- (i) hundred per cent of profits and gains derived from the export of such articles or things or computer software for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, and thereafter, fifty per cent of such profits and gains for further two consecutive assessment years, and thereafter; (ii) for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the .....

X X X X X X X

Full Text of the Document

X X X X X X X

, 1981, in any free trade zone; or (b) commencing on or after the 1st day of April, 1994, in any electronic hardware technology park, or, as the case may be, software technology park; (c) commencing on or after the 1st day of April, 2001 in any special economic zone; (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence : Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertakings as is referred to in section 33B, in the circumstances and within the period specified in that section; (iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation.-The provisions of Explanation 1 and Explanation 2 to sub-section (2) of section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section. (3) This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India b .....

X X X X X X X

Full Text of the Document

X X X X X X X

ear had been given full effect to for that assessment year itself and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of subsection (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of subsection (1) of section 36, as the case may be, shall not apply in relation to any such allowance or deduction; (ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years ending before the 1st day of April, 2001; (iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and (iv) in computing the depreciation allowance under section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment .....

X X X X X X X

Full Text of the Document

X X X X X X X

by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder or any other corresponding law for the time being in force; (iii) electronic hardware technology park means any park set up in accordance with the Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce and Industry; (iv) export turnover means the consideration in respect of export by the undertaking] of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India; (v) free trade zone means the Kandla Free Trade Zone and the Santacruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette,specify for the purposes of t .....

X X X X X X X

Full Text of the Document

X X X X X X X

note that AO further observed that with regard to the letter dated 20.3.2013 submitted by the AR of the assessee to consider its claim according to the Circular no. 01/2013 dated 17.1.2013, the A.R. of the assessee himself submitted that the issue in the Circular was different but the motive was same to grant deduction u/s. 10B to the Assessee, which is contrary to law and itself establish that Ld. CIT(A) has passed the non-speaking and laconic order. In our view, it is true that requirement of stating reasons for judicial orders necessarily does not mean a very detailed or lengthy order, but there should be some reasoning recorded by the lower Authority for granting relief to the assessee. In view of the above, we are unable to find any infirmity in the arguments advanced on behalf of the Department, that no reasons have been recorded for allowing the claim of the assessee, this legal infirmity has, in fact, prejudicially affected the case of the assessee before us. Hence, we are unable to sustain the order of the Ld. CIT(A) and for the afore-recorded reasons, we set aside the impugned order and remit back the issues in dispute to the file of the AO with the direction to decide th .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||