2020 (11) TMI 214

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....t prejudicial to the appellant is bad in law and liable to be quashed. 2. Grounds relating to disallowance under section 80JJAA - Tax Effect: (10,51,99,796*33.99%)=Rs. 3,57,57,411 2.1. The learned CIT(A) has erred in confirming the disallowance under section 80JJAA amounting to Rs. 10,51,99,796. On facts and circumstances of the case and law applicable, deduction under section 80JJAA should be allowed as claimed in the return of income. 3. Grounds relating to Foreign Tax credit - Tax Effect = Rs. 1,61,48,344 3.1. The learned CIT(A) has erred in not allowing incremental foreign tax credit amounting to Rs. 1,61,48,344 which was claimed during the assessment proceedings. On facts and circumstances of the cas....

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....he Act. He also placed reliance on Full Bench by decision Hon'ble Supreme Court in case of Commissioner of Customs (Import) Vs. Dinesh Kumar & Co. & Ors. reported in Civil Appeal No.3327 of 2007 by order dated 5. In respect of the full amount of foreign tax credit claimed by assessee, it was observed by Ld.CIT(A) that assessee has not submitted any letter of claim before Ld.AO for additional foreign tax. And that assessee had only by way of written submission dated 05/07/2016 filed the claim of foreign tax credit submitted before Ld.AO. Ld.CIT(A) was of the opinion that assessee did not claim additional foreign tax credit in its return of income during the assessment proceedings till the last date of submission and that Ld.AO. He also no....

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....5 Taxmann.com 154, wherein, the issue regarding, whether, employees employed in software industries could be regarded as workmen has been considered in this case wherein this tribunal held that software industry has also been notified as industry for purpose of Industrial Disputes Act, 1947, by state of Karnataka, and that, the employees employed in the software development industry rendered technical services and not services in the nature of supervisory or management character. 12. Ld.AR submitted that, this is the 3rd year of claim by assessee and that the employees against whose wages the deduction has been claimed satisfies the necessary conditions. He placed reliance on the observations of this Tribunal in Texas Instruments (Ind....

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.... Tribunal is according to the AO since the additional wages paid to these 287 employees were not eligible to deduction u/s.80JJAA of the Act because these employees did not work for more than 300 days in FY 2006- 07 relevant to AY 2007-08, the wages paid to these employees in AY 2008- 09 will also not qualify for deduction u/s.80JJAA of the Act. In other words according to the AO if the condition for grant of deduction u/s.80JJAA of the Act is not satisfied with reference to additional wages paid to new employees in the first year of their employment, then the additional wages paid to such new employees will not allowed in the second and third Assessment Years also. As pointed out by the learned counsel for the Assessee, this approach of th....

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....e reason that the workmen did not work for 300 days or more but if the next two Assessment years, if he works for more than 300 days each, then the deduction u/s.80JJAA of the Act has to be allowed. It is not proper to say that if the deduction is refused in the first year of employment of the new employee then for the next two succeeding Assessment Years also, the benefit of deduction will not be available. Such an approach defeats the very purpose for which deduction u/s.80JJAA of the Act is allowed for three consecutive Assessment years. This aspect has now been clarified in the Finance Act, 2018 by adding a second proviso to the definition of additional employee in Explanation (ii) to Sec.80JJAA of the Act. Even prior to such curative o....