TaxTMI 
TaxTMI 
2017 (9) TMI 1410
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....Panel passed under Section 144C(5) of the IT Act. 2. Mr. Pinto appearing on behalf of the Revenue would submit that the questions proposed at page 5 paragraph 6.1 and 6.2 are substantial questions of law and not covered, as erroneously understood by the Tribunal, by the Division Bench judgment of this Court in the case of Commissioner of Income Tax vs. Gem Plus Jewelery India Limited, reported in (2011) 330 ITR 175 (Bom). 3. We have carefully examined this contention of the Revenue. 4. The return of income was filed on 30th September, 2008 declaring certain income (Rs.26,83,735/) after claiming deduction of Rs. 19,90,61,838/under Section 10A of the IT Act. The Assessing Officer had, in terms of the scrutiny assessment, issued notices an....
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.... Panel, relying on the judgment of this Court in Gem Plus (supra) directed that such expenditure in foreign exchange should also be reduced from total turnover for the purpose of calculating deduction under Section 10A of the IT Act. 6. The Assessee was aggrieved because of the directions and as far as the questions proposed are concerned, it found that the assessee is a wholly owned subsidiary of Lionbridge Mauritius Limited. The assessee provided certain services which were styled as localization services. Thereafter, the assessee pressed the matter up to the Dispute Resolution Panel and pointed out the details thereof. We are concerned in this case with the rejection of the claim of deduction under Section 10A on the disallowance made u....
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....ssing Officer/Transfer Pricing Officer had proposed disallowance under Section 40(a)(v) in respect of tax borne by the employer which was claimed as exempt by the employee under Section 10(10CC) of the IT Act. However, deduction under Section 10A was not allowed on the revised business profit so enhanced because of disallowance under Section 40(a)(v). The Tribunal found that the Division Bench judgment in Gem Plus (supra) squarely covers the issue under consideration, and therefore, the Assessing Officer will have to be directed to allow deduction under Section 10A on the enhanced business profit of the assessee, namely, profit to be increased by the amount of disallowance made under Section 40(a)(v) since the assessee has no income other t....
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....position, however, as it obtains in the present case arises out of the fact that the disallowance which was effected by the Assessing Officer has not, the court is informed, been challenged by the assessee. As a matter of fact the question of law which is formulated by the Revenue proceeds on the basis that the assessed income was enhanced due to the disallowance of the employer's as well as the employees' contribution towards provident fund/ESIC and the only question which is canvassed on behalf of the Revenue is whether on that basis the Tribunal was justified in directing the Assessing Officer to grant the exemption under section 10A. On this position, in the present case it cannot be disputed that the net consequence of the disa....