TaxTMI 
TaxTMI 
2013 (1) TMI 294
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.... under Section 154 of the Income Tax Act, 1961. (ii) The Commissioner of Income Tax (Appeals) ought to have appreciated that issue considered by the Assessing officer for the purpose of rectification is highly debatable issue and as such the Assessing Officer was not correct in amending the order under Section 154 of the Act. (iii) The Commissioner of Income Tax (Appeals) ought to have appreciated that debatable issue cannot be considered as mistake apparent from record. 3. Without prejudice to the above claim, the Appellant submitted that the Commissioner of Income Tax (Appeals) ought to have appreciated that the claim of deduction under section 10A allows an assessee to avail the benefits only for a period of 5 years out of 8 consecutive years and the Appellant had chosen the period only from Assessment Year 1999-2000 and not claimed the deduction under Section 10A for the Assessment Year 1997-98. Accordingly, the unabsorbed business loss /unabsorbed depreciation of Assessment Year 1997-98 should be allowed to be carried forward and set off in the subsequent years." 3. Facts as relevant to the grounds are that the assessee is a company involved in the business of main....
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.... Business income 1,19,95,701 Add: Income from other sources (as admitted) 28,81,563 Exchange fluctuation treated as income from other sources 30,85,451 59,67,014 GROSS TOTAL INCOME 1,79,62,715 Less: Deduction u/s 80-G 4,000 TAXABLE INCOME 1,79,58,715 or 1,79,58,720 Net tax payable Rs. 17,83,430/- (Calculation sheet enclosed) This should be paid as per demand notice and challan enclosed The income computed by the assessee under sec. 115JB is adopted as it is." Subsequently, the Assessing Officer issued notice dated 27.04.2007 to the assessee stating therein that there had been a mistake apparent on the face of record since its claim of brought forward business loss and depreciation of assessment year 1997-98 of Rs. 4,90,32,29....
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....e instant case. Per him, the assessee is very well entitled to relief of brought forward loss and depreciation for the assessment year 1997-98 as accepted in the assessment order and section 10A(6)(ii) of the "Act" is not even applicable. To buttress his submissions, he has also placed reliance on following case law: 1. WNS Global Services (P) Ltd. v. Addl. CIT [2011] 45 SOT 74 (Mum) (URO) 2. Lason India (P.) Ltd. v. ITO [I.T. Appeal No.206/Mds/07 decided on 27-7-2007]. 3. Jai Ushin Ltd. v. Dy. CIT [2009] 117 ITD 1 4. Dy. CIT v. Akay Flavours & Aromatics (P.) Ltd. [2011] 130 ITD 41. 5. Ford Business Services Centre (P) Ltd. v. Asstt. CIT [2008] 114 TTJ 881 (Chennai). and prayed for acceptance of the appeal. 6. Opposing the submissions made by the assessee, the DR representing the Revenue has strongly supported the order of the CIT(A) as well as reasons contained therein and prayed for upholding the same. 7. We have considered rival contentions at length and have also perused relevant findings as well as case law cited. Admitted facts of the case are that the assessee is a unit entitled for deduction....
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....es 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 year. 8. A perusal of the legislative history of the provision makes it clear that the same was incorporated in the "Act" with effect from 01.04.1981 by the Finance Act, 1981. Initially, it had provided tax holiday of five consecutive year beginning with the assessment year relevant to the previous year in which the concern undertaking begins manufacturing or production of the article, things or computer software. As we notice from the amendment incorporated by the Finance Act 2000 w.e.f. 01.04.2001, the period of tax holiday of five assessment year stands extended to ten consecutive assessment....
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....2, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years, in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year 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 sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of sub- section (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 ; Expln.-2 (vi) to Sec.10-A of the Act defines "....