2016 (11) TMI 452

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....nce of deduction of Rs. 5,75,82,474/-, u/s 10AA of the IT Act, as against claim of Rs. 14,83,714/- made by the assessee and allowed by A.O. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing the claim of depreciation of Rs. 8,60,411/- on capitalization of legal & professional charges." 3. The assessee is having a manufacturing unit at Madras SEZ in respect of which the claim of deduction u/s 10AA of the Income Tax Act, 1961 was made by the assessee. The original return was filed on 29/10/2007 declaring income of Rs. 34,47,74,641/- and the claim of deduction u/s 10AA of the Income Tax Act, 1961 was made at Rs. 14,83,714/-. A revised return was filed on 31/3/2009 and the claim of deductio....

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....the assessee is Rs. 2000, then the profits eligible for deduction u/s 10AA of the Act is Rs. 100x 500/2000=Rs 25. 5. By the virtue of the retrospective amendment, instead of Rs. 2000 (total turnover) being taken for the computation of deductible export profits, Rs. 500 (total turnover of the undertaking) is to be taken. This means that the eligible profits for deduction will be Rs. 100 and not Rs. 25. Now by the retrospective amendment to Section 10AA (7) by the Finance Act 2010 the benefit conferred on to the assessee from 1/4/2010 has been made applicable from 1/4/2006 and shall apply to Assessment Year 2007-08 also. 6. The assessee had made payment of Rs. 84,38,357/- as professional and legal charges in relation to taking over the busi....