TaxTMI 
TaxTMI 
2012 (2) TMI 535
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....ee filed a return of 'Nil' income by claiming deduction under Chapter VI-A of the Act which was processed under Section 143(1)(a) of the Act. The rectification order under section 154 of the Act came to be passed. That was challenged in appeal which came to be annulled. 2. The assessing Officer took up the matter for scrutiny assessment. The assessee had claimed an exemption in respect of the issue of premium on sale of special import licence. The premium on sale on special import licence was held to be a not an income attributable to software export and therefore has not allowed the assessee from claiming exemption on imported software. It was also disallowed on the ground that the payments made on account of software import for in hous....
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....as well as the order partly allowing the assessee's appeal. 3. The 1st substantial question of law which arises for consideration reads as under:- 1) Whether Tribunal was correct in holding that income from sale of scrap newspaper, stationery and battery etc., should be treated as profits and gains from exports and deduction under Section 10A of the Act should be allowed?" This question also arose for consideration in the assessee's appeal in ITA No.507/2002 disposed off on 25th August, 2010, where it was held that the assessee was entitled to deductions as income derived therefrom from the aforesaid business. For the reasons set out therein, this substantial question of law is answered in favour of the assessee and against t....
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..../- should be written off as a debt since the assessee had discontinued its business activity with M/s. Apple Products without assigning any cogent reason by relying on any material to show as to why this amount should be written off and consequently recorded as perverse finding?' The assessee company claimed total loss from discontinuance of dealership of M/s. Apple Products business of Rs. 4,23,71,186/- under the category of extraordinary items during the year. The assessee Company was the distributor of computer and related products of M/s Apple Products, USA. In February, 1998 the assessee Company discontinued the distributorship. The loss on account of discontinuance of M/s. Apple products business arose consequently. The loss is com....
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....th any use and throw items. Those products were made by a reputed manufacturer in the world. Any sale is accompanied by warranties and service contract. Therefore, the assessee was asked to clarify. The assessee stated that M/s Apple Products have now continued its distribution in India. However, the assessee did not furnish full particulars. Therefore, the assessing authority was not prepared to accept the write off and therefore the said amount was also added. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-Tax Appeals. The said order of the Assessing authority was affirmed by the appellate Commissioner. However, the Tribunal held that dealing with the Apple Products, USA by the assessee was not....
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....as they are no longer dealers. It is on record that M/s. Apple products continued carrying on the business of their products. Therefore once the principal himself in carrying on the business and that the agent has discontinued the business the chances of anybody approaching the agent to get those product is remote and once the assessee closed his account discontinuing the business, the products which were in stock naturally would not have any value. That is the reason why the Tribunal accepted the case of the assessee that due to discontinuance of product business and technological obsolescence and cannibalization of equipment the spare parts due to non-supply of Apple products is a plausible reason. Such occurrence is not rare in business ....
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....ed in favour of the assessee and against the Revenue. The 6th and 7th substantial questions of law which arise for consideration are as follows:- 6. Whether the Tribunal was correct in holding that certain newly established undertakings are separate entities for the purpose of computation of deduction under section 10A of the Act even though this issue was not the subject matter of appeal but was the subject matter before the assessing officer in reassessment proceedings and consequently recorded a perverse finding?" 7. Whether the Tribunal was correct in holding that there has been new undertaking by undergoing organic expansion by adding certain equipments, man power by treating the same as pre-existing units for the purpose of t....