TaxTMI 
TaxTMI 
2018 (4) TMI 1352
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....essed. 4. On Ground Nos. 1 and 2, assessee challenged the order of the Ld. CIT(A) in denying the exemption under section 10B of the I.T. Act in a sum of Rs. 2,43,53,575/-. The Revenue has also raised the cross objection on the same issue stating therein that no deduction under section 10B shall be allowed to the assessee as return of income was not filed on or before the due date specified under section 139(1) of the I.T. Act and that the Ld. CIT(A) has not adjudicated other points raised before him. 5. The A.O. denied the exemption under section 10B of the I.T. Act. It was submitted that A.O. has denied the exemption under section 10B of the I.T. Act because no return was filed on or before the due date specified under section 139(1) of the I.T. Act because original return was filed on 31st December, 2008. The requisite mandatory report in Form-56G dated 09th March, 2010 has been filed by assessee, but, as per provisions of the Income Tax Act, this report should have been prepared before due date of filing of the return and that assessee has regularly furnished declaration in writing under section 10B(8) in A.Ys. 2002-2003 to 2006-2007 that the provisions of this Section may not....
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....y denied the exemption under section 10B of the I.T. Act to the assessee because original return under section 139(1) was not filed within the period prescribed under section 139(1) of the I.T. Act. Therefore, provisions of Section 10B(1) Proviso (3) will apply against the assessee. On this ground itself assessee would not be entitled for deduction. Therefore, there is no need to decide other points in the present issue. Ground Nos. 1 and 2 of the appeal of assessee are accordingly dismissed. The Cross Objection of the Department is allowed. 8. On Ground No.3, assessee challenged the orders of the authorities below in disallowing Rs. 2,66,614/- under section 14A of the I.T. Act. In the written submissions, assessee has stated that in the opinion of the A.O. it was not necessary to establish a direct nexus between the exempted income and expenses. The A.O. concluded that to earn dividend income of Rs. 3,20,571/-, expenditure of Rs. 2,66,614/- has been incurred. There was no definite finding on incurring of expenditure and only on presumptions, disallowance have been made. The assessee stated that the earning of the dividend required minimum activity on behalf of the assessee-compan....
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....cordingly, set aside the orders of the authorities below and delete the addition of Rs. 2,19,610/-. However, as regards the balance amount of Rs. 47,053/-, Learned Counsel for the Assessee did not make further submissions considering it to be a small amount. This part of ground is accordingly dismissed. In the result, addition of Rs. 2,19,561/- is deleted. This ground of appeal of assessee is partly allowed. 12. In the result, Appeal of Assessee is partly allowed whereas, Cross Objection of the Department is allowed. ITA.No.6030/Del./2015 - Assessee's Appeal - A.Y. 2008-2009 : 13. This appeal by assessee has been directed against the order of the Ld. CIT(A)-20, New Delhi, dated 12th October, 2015 for the A.Y. 2008-2009, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961. 14. The penalty was levied by the A.O. on account of denying exemption under section 10B of the I.T. Act as noted above. The assessee filed return declaring income of Rs. 70,06,280/- on 31st December, 2008 which was revised declaring -NIL- income. The assessment was completed under section 143(3) of the I.T. Act on 29th December, 2010 at the income of Rs. 72,85,400/-. The A.O. made ....
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....yond the period of limitation in which the assessee did not make any claim of deduction under section 10B of the I.T. Act. Subsequently, return was revised, in which, assessee made claim of deduction under section 10B of the I.T. Act. The claim of assessee were denied primarily on the reason that return was not filed within the time prescribed under section 139(1) of the I.T. Act. It was also noted that assessee has not furnished Certificate under section 10B(8) of the I.T. Act. Since revised return was invalid as the original return was filed belatedly, therefore, claim of assessee for deduction under section 10B of the I.T. Act were denied. However, the claim of assessee was not found to be false or bogus. The assessee disclosed all the particulars for claiming deduction under section 10B of the I.T. Act in the return of income as well as at the assessment stage. In the later years, the claim of assessee under section 10B have been allowed by the Ld. CIT(A), against which, the department is in appeal in different years. therefore, in assessment year under appeal, the claim of assessee for deduction under section 10B have been denied on technical reasons. In our view, the facts an....