TaxTMI 
TaxTMI 
TaxTMI 
2019 (12) TMI 309
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....nder section 10AA of the Income Tax Act, 1961 (for short "the Act"). 3. Brief facts are, the assessee company is engaged in manufacturing and export of diamond studded jewellery. For the assessment year under consideration, the assessee filed its return of income originally on 30th September 2008, declaring total income of Rs. 43,01,420. Subsequently, the assessee filed revised return of income on 12th April 2009, declaring total income of Rs. 50,37,160. In the course of assessment proceedings, the Assessing Officer noticed that as per audit report in Form no.56F, the assessee has claimed deduction of Rs. 1,75,90,920 under section 10AA of the Act. On further verification of details available on record, the Assessing Officer found that the ....
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.... the alternative computation furnished by the assessee in Form no.54F, learned Commissioner (Appeals) observed, the issue raised by the assessee does not emanate from the assessment order. Further, he observed, there is no necessity for the assessee to furnish two alternative working of deduction under section 10AA of the Act. Accordingly, he refused to entertain the claim of the assessee. 5. The learned Authorised Representative reiterating the submissions made before learned Commissioner (Appeals) submitted, neither the Assessing Officer nor learned Commissioner (Appeals) has considered the alternative computation of deduction under section 10AA of the Act. In this context, he drew our attention to the two workings of 10AA deduction as ....
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....shed by the assessee before the Assessing Officer and learned Commissioner (Appeals) claiming deduction at Rs. 2,23,99,783, has not been considered. On a perusal of both the working of 10AA deduction, as mentioned in Para-4 of the statement of facts, it is seen in para-(a), the assessee has worked out deduction under section 10AA of the Act only on direct export sales made by it. Whereas, in para-(b) containing the without prejudice working of 10AA deduction, the assessee has computed the deduction by including the sales made to other SEZ units. In other words, even sales which were not in the course of direct export by the assessee were included in the export turnover, thereby, enhancing the claim of deduction under section 10AA of the Act....
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....udication. 11. In the result, assessee's appeal is dismissed. ITA no.5995/Mum./2014 A.Y. - 2010-11 12. Ground no.1, is identical to ground no.1, of ITA no.329/Mum./ 2014. In the impugned assessment year also, the assessee has furnished two sets of working of deduction under section 10AA. One by excluding sales made to other SEZ units (IUT sales) and another working including IUT sales. In the course of assessment proceedings, the Assessing Officer on a perusal of two sets of working of deduction under section 10AA of the Act, noticed that without including the IUT sales of Rs. 3,08,42,651, deduction under section 10AA of the Act has been shown at Rs. 5,74,56,852. Whereas, by including the IUT sales deduction under section 10AA has been s....
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....duction under section 10AA of the Act, one including the IUT sales and another excluding IUT sales. The Assessing Officer while rejecting the working including IUT sales has accepted the working excluding IUT sales. However, there is some confusion with regard to final figure of deduction claimed under section 10AA of the Act under both the working. Though, in the assessment order, the Assessing Officer has observed that after excluding IUT sales, deduction under section 10AA has been shown at Rs. 5,74,56,852 and including IUT sales deduction under section 10AA of the Act has been computed at Rs. 5,98,75,170, however, in the statement of facts attached to the memorandum of appeal in form no.36, the assessee has produced both the working in ....