TaxTMI 
TaxTMI 
2015 (11) TMI 1727
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....15JB at Rs. 100,98,99,226. Assessment was completed u/s. 143(3) after making the following disallowances: "1) Deduction u/s. 10A 2) Disallowance of belated PF & ESI payments 3) Income tax - prior years" 3. As regards the disallowance u/s. 10A of the Act, during the year the assessee company earned an income of Rs. 77,47,60,927 from carrying out the business of software exports. The assessee company claimed the entire amount of Rs. 77,47,60,927 as exemption u/s. 10A of the I.T. Act. During the course of examination, the AO noticed that the assessee had incurred the following expenditure: 3.1 Referring to explanation 2(iv) of section 10A, the AO observed that any expenditure incurred towards telecommunication charges, insurance....
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....bution before filing of the return of income. 8. Assessee did not press the ground regarding income-tax prior years, thus, the same was dismissed. 9. Aggrieved by the order of the CIT(A), the revenue is in appeal before us raising the following grounds of appeal: "1. The appellate order of the learned CIT(A) is erroneous both on facts and Law. 2. In the fact and circumstances of the case, whether the CIT(A) is correct in law in directing that the communication charges shall not be excluded from Export Turnover though Explanation 2 to section 10A of the Income Tax Act, 1961, clearly states that they need to be excluded. 3. In the facts and circumstances of the case, whether the CIT(A) is correct in allowing the appeal of the a....
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....a High Court has also taken similar view in the case of CIT v. Tata Elxsi Ltd. & Others, 247 CTR 334(Kar). Respectfully following the said decisions cited supra we uphold the order of the CIT(A) in directing the assessing officer to reduce foreign travel expenses, cost of service and professional charges from total turnover and dismiss the ground raised by the revenue in this regard." 12.1 As the CIT(A) allowed the ground of appeal following the decision of the ITAT in assessee's own case for earlier AY, we do not find any infirmity in the order of the CIT(A) and accordingly upholding the same, we dismiss the ground raised by the revenue. 12.2 As regards the disallowance u/s. 36(1)(va), this ground is covered by the decision of IT....
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.... expressly commences with a non obstante clause, the underlying object being to disallow deductions claimed merely by making a book entry based on merchantile system of accounting. At the same time, s. 43B (main section) made it mandatory for the Department to grant deduction in computing the income under s. 28 in the year in which tax, duty, cess, etc., is actually paid. However, Parliament took cognizance of the fact that accounting year of a company did not always tally with the due dates under the Provident Fund Act, Municipal Corporation Act (octroi) and other tax laws. Therefore, by way of first proviso to s. 43B, an incentive/relaxation was sought to be given in respect of tax, duty, cess or fee by explicitly stating that if such tax....
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.... retrospectively w.e.f. 1st April, 1988 (when the first proviso stood inserted). Hardship and the invidious discrimination would be caused to the assessee(s) if the contention of the Department is to be accepted that Finance Act, 2003, to the above extent, operated prospectively. Take an example--in the present case, the respondents have deposited the contributions with the R.P.F.C. after 31st March (end of accounting year) but before filing of the returns under the IT Act and the date of payment falls after the due date under the Employees' Provident Fund Act, they will be denied deduction for all times. In view of the second proviso, which stood on the statute book at the relevant time, each of such assessee(s) would not be entitled t....