TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 1094
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....the Companies Act and is engaged in the business of manufacturing of electronic appliances and of generating power. During the period relevant to assessment year 2011-2012, the petitioner had installed three windmills and claimed deduction of Rs. 36.20 lacs (rounded off) under section 80IA of the Act. The return was taken in scrutiny. The Assessing Officer passed a detailed order in which he examined this particular claim of the petitioner also and restricted the deduction under section 80IA of the Act at Rs. 33.12 lacs (rounded off). Thus he made limited disallowance of Rs. 3.8 lacs. To reopen such assessment, impugned notice came to be issued. The Assessing Officer had recorded his reasons stating thus : "2. On verification of records i....
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....wever, while finalizing the assessment u/s. 143(3) of the I.T. Act, the deduction u/s. 801A of the IT. Act has been allowed to the assessee to the extent of Rs. 33,12,468/despite failure on the part of the assessee to furnish separate profit & loss account and balance sheet of the undertaking for which deduction has been claimed. Since, the assessee has not furnished separate profit & loss account and balance sheet alongwith audit report in Form No. 10CCB, the claim of the deduction u/s. 801A has been wrongly allowed. This has resulted into under assessment of income to that extent. 5. Without prejudice to the above the claim of the deduction made by the assessee is not fully allowable in view of the following discussion. I. On verifi....
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....rect deduction u/s. 801A of the IT Act. Schedule Head Amount(Rs.) Note 24 Auditor remuneration 600,000 Consultancy Fee 109,100 Legal and Professional Charges 5,261,800 Legal & Documentation charges 233,195 Rates and Taxes 2,085,708 Medical reimbursement expenses 309,593 Post Courier & Telephone 2,220,432 Stationery expenses 2,595,129 Vehicle Fuel 1,8832,258 Other administrative expenses 4,954,289 Note 22 Director Remuneration 5,52,00,000 Note 24 Travelling expenses 3,13,39,655 Note 23 Financial Charges 2,52,63,086 14,89,94,133 The aforementioned common cost should have been taken at average of following : * Profit ratio of these divisions. * Gross asset ratio of these divisions. ....
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....Profit and Loss account and balance sheet of the undertaking for the year under consideration. In his opinion in absence of such documents, the deduction under section 80IA of the Act could not have been allowed. His alternative contention was that an expense of Rs. 16.36 lacs should have been attributed to windmill division which would suppress the profit from such division and resultantly, deduction under section 80IA of the Act had to be adjusted accordingly. 4. The petitioner raised detailed objections to the notice of reopening under communication dated 14.7.2016. Such objections were however rejected by order dated 21.7.2016. Hence this petition. 5. Learned counsel for the petitioners raised the following four contentions : 1) The....