TaxTMI 
TaxTMI 
2016 (3) TMI 748
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....961 (hereinafter referred to as 'the Act') vide his order dated 28.12.2011 for assessment year 2009-10. Assessee raised the following grounds:- "1.0 Deduction under section 10AA of the Income tax Act, 1961 1.1 The learned Commissioner of Income Tax erred in assessing the quantum of deduction under section 10AA in his order under section 263 passed on March 26, 2014. 1.2 He erred in stating that the appellant was entitled for a deduction of Rs. 8,05,512/- under section 10AA of the Income Tax Act, 1961. 1.3 He erred in law by interpreting that the amended provisions of sub-section (7) of section 10AA were made applicable from assessment year 2010-11 and hence it was not applicable for assessment year 2009-10. He err....
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.... Rs. 22,27,285/- The assessee claimed the deduction u/s 10AA of the Act in respect of the export profit from SEZ unit by considering the total turnover of SEZ unit and export turnover of SEZ unit. The deduction under section 10AA of the Act was duly certified by a qualified chartered accountant in form 56F as prescribed. The working of deduction under section 10AA of the Act is reproduced below:- Total profit of SEZ X export turnover of SEZ = Rs.21,88,235/ Total turnover of SEZ The AO in his assessment order u/s 143(3) of the Act has accepted the claim of the assessee under section 10AA in respect of its unit located at SEZ, Noida. However Ld. CIT found the order of AO is erroneous in so far as it is....
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.... Shri D.S.Damle Ld. Authorized Representative appearing on behalf of assessee and Shri Sandeep Chaube Ld. Departmental Representative appearing on behalf of Revenue. 3. We have heard rival submissions of both the parties and perused the materials available on record. Ld. AR submitted paper book which is containing pages from 1 to 13. Before us the ld. AR submitted that the total turnover/ export turnover and profit arising from the undertaking located at SEZ shall alone be considered for the working of the deduction under section 10AA(7) of the Act. The total turnover of the assessee shall not be taken into account while working out the deduction under section 10AA of the Act. The assessee also submitted that the provisions of section 10....
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....ass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment...." The sum and substance of the above reproduced section 263(1) can be summarized in the following points:-: 1) The commissioner may call for an examine the record of any proceeding under the Act; 2) If he considers that the order passed by the AO is (i) Erroneous; and (ii) Is prejudicial to the interest of Revenue; 3) He has to give an opportunity of hearing in this respect to the assessee; and 4) He has to make or cause to make such enquiry as he deems necessary; 5) He may pass such order t....
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....under section 10AA of the Act. For the applicability of the amended section 10AA of the Act to the instant assessee for the year under consideration, we reproduce the relevant portion of the CBDT circular 01 of 2011 as under : 6. Computation of exempted profits in the case of units in Special Economic Zones (SEZs) 6.1 Section 10AA was inserted in the Income-tax Act by the Special Economic Zone Act, 2005 with effect from 10.2.2006. Through the Finance (No.2) Act, 2009, section 10AA(7) of the Income-tax Act, 1961 was amended and the words "by the undertaking" were substituted for "by the assessee" with effect from assessment year 2010-11 and subsequent assessment years. This was done as the existing formula was perceived to ....