2025 (10) TMI 100 - SCH - Income Tax

Appeal on denial of deduction under Section 10A dismissed as assessee in liquidation prevents further adjudication; revenue granted liberty

Commissioner of Income Tax II Versus M/s. ICSA (India) Ltd.

Appeal concerned denial of deduction under s.10A where revenue argued non-compliance with the proviso; HC had allowed the deduction. SC noted the ... Grant of deduction u/s 10A - argument of the revenue before the High Court was that if the assessee having failed to comply with the requirement under the proviso to Section 10A (1) (A) the deduction could not have been allowed HELD THAT:- Today when the matter was taken up for hearing Mr. Raghavendra P Shankar, the learned A.S.G. brought to our notice that the respondent-assessee has gone under liquidation. In such circumstances, nothing further can be done in the matter now. We dispose of this appeal with the liberty in favour of the revenue to avail appropriate legal remedy before the appropriate forum in accordance with law. This appeal arises from a High Court order dated 12.06.2014 dismissing the revenue's appeal and affirming the Tribunal's order (22.01.2014) in relation to assessment year 2009-2010. The core issue was the allowability of deduction under Section 10A of the Income Tax Act, 1961 where the revenue contended that failure to comply with the proviso to Section 10A(1A) precluded the deduction. The Court noted that the respondent-assessee has 'gone under liquidation.' In view of liquidation, the Court held that 'nothing further can be done in the matter now' and disposed of the appeal, while granting the revenue 'liberty ... to avail appropriate legal remedy before the appropriate forum in accordance with law.' Connected appeals and pending applications were disposed of accordingly.