TaxTMI 
TaxTMI 
2016 (12) TMI 446
X X X X Extracts X X X X
X X X X Extracts X X X X
....Income Tax Act, 1961. 2. Serial no. ii, of the Notice under section 263 says that "Amount of deduction to be allowed under section 10B was not verified by the Assessing Officer". It is respectfully submitted that all the related details/documents had been submitted at the time of assessment and the Officer had verified all the relevant documents for quantifying the deduction under section 10B. This is only a change of opinion and therefore does not become eligible for proceedings under section 263 of the Income Tax Act, 1961. 3. Serial no. iv, of the Notice under section 263 says that "Reconciliation of income as per TDS certificates and income credited in the books not done by the Assessing Officer". It is respectfully submitted that the reconciliation statement between TDS Certificates and Books of Account had been submitted to the Assessing Officer and was verified by him and there is no income which has escaped assessment. This is also a change of opinion and therefore does not become eligible for proceedings under section 263 of the Income Tax Act, 1961. 4. Excess deduction in serial No. iii is only a mistake apparent on the record as all the documents were produced a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee's contention that there is no definition for total income is incorrect. Further, what can be allowed as a business expenditure is clearly mentioned in Section 28 to 43D. There is no mention of deduction u/s 10AB in any of these sections. Hence assessee's claim that the deduction u/s 10B is at par with any expenditure is not acceptable. The assessee has computed the total income after deducting profit from 10B from gross profit rather than from total income. The total income has to be taken as a figure as mentioned in the Act. While claiming the deduction u/s 10B as an expenditure the assessee has reduced his gross profit and thereby was able to make a higher claim which is not due to it. The correct procedure will be to compute total income of the assessee as per Income-tax Act as if there is no claim u/s 10B and then arrive at income of the export unit as if that is the only business of the assessee and then deduct income of export unit from total income of the assessee. In view of this, the assessee's claim was accepted by the Assessing Officer without examining relevant facts and provisions of the Income-tax Act. Hence the order is erroneous and prejudicial to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wed under serial no. 35 (page 13) to arrive at the net profit or loss from business or profession under serial no.A37. 1.5 This resultant profit or loss is taken under serial no. 2(i) (page 10) under Part TI for computing the Total Income. 1.6 It is only after the Income from all the heads are cumulated under serial no.5 (page 10) of Part TI that the brought forwarded losses are set off under serial no.8 (page 10). 1.7 The above brought forwarded losses are quantified in Schedule BFLA (Page 18) which includes the brought forward losses under section 72(2) and unabsorbed depreciation under section 32(2) with priority of setoff off for business loss over unabsorbed depreciation. It is therefore submitted that the above order of computation of the taxable income as detailed in ITR-6 as prescribed under the Income Tax Rules 1962 is binding on the Assessing Officers and is the correct method to be followed to computing the taxable income. 1.8 The above view has been confirmed in several decisions, a few of which are listed below: 1. Kanataka High Court in CIT & Another v. Yokogawa India Ltd & Others (341 ITR 0385) 2. The Bombay High Court in ClT v. Black & ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....laborate one. The reason why it was not an elaborate order is due to the fact that the tax liability was only under MAT and not the regular computations. For MAT Computation please refer page D. 2.3 Reliance is placed on the decisions of 1. ITAT Kolkata (C) Bench in Maithan International v. Assistant Commission r or Income Tax ((2012) l34 ITD 0393 (page 18 to 27 of the Paper Book 2. Delhi High Court In Commissioner of Income Tax v. Ashish Rajpal (320 ITR 0674) (Pages 28 to 39 of the Paper Book) 3. The serial no. iv of the Order under section 263 deals with non-reconciliation of TDS Certificate and Income Credits in the Books. 3.1 It is the respectfully submitted that there is no escapement of income at all in respect of interest since the interest come from the bank is accounted on the basis of the Bank Statement and the Bank reconciliation is done on the monthly basis. 3.2 In respect of the interest from the Electricity Board the amount is reduced from the Electricity Bill and no amount is paid in cash and is therefore accounted and there is no loss of Revenue. 3.3 Since there is no escapement of income in respect of interes....