TaxTMI 
TaxTMI 
2021 (8) TMI 912
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....be not pressed by the ld AR at the time of hearing. The same is reckoned as a statement made from the Bar and accordingly Ground No. 1 of assessee's appeal is dismissed as not pressed. 3. The Ground No.2 raised by the assessee is with regard to claim of deduction u/s 10AA of the Act in respect of an eligible undertaking to be allowed on standalone basis. 3.1. We have heard the rival submissions and perused the materials available on record. We find that the assessee company is engaged in the business of manufacture of chemicals . The return of income for the Asst Year 2012-13 was filed by the assessee company on 27.9.2012 declaring total income of Rs NIL under normal provisions of the Act and book profit of Rs. 52,66,09,039/- u/s 115JB of the Act. We find that the assessee's factory premises is located at Thane and Dahej, Gujarat. The factory located at Dahej, Gujarat, is a Special Economic Zone (SEZ). The assessee had claimed deduction u/s 10AA of the Act amounting to Rs. 72,08,44,373/- against its profits from SEZ unit as is evident from page 12 of the factual paper book (FPB) containing return of income. We find from page 19 of the FPB under the heading 'Details of Losses to b....
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....be of the undertaking located in specified zones or 100% Export Oriented Undertakings, as the case may be, and this shall not have any material relationship with the other business of the assessee outside these zones or units for the purposes of this provision." 17. If the specific provisions of the Act provide [first proviso to Sections 10A(1); 10A (1A) and 10A (4)] that the unit that is contemplated for grant of benefit of deduction is the eligible undertaking and that is also how the contemporaneous Circular of the department (No. 794 dated 09.08.2000) understood the situation, it is only logical and natural that the stage of deduction of the profits and gains of the business of an eligible undertaking has to be made independently and, therefore, immediately after the stage of determination of its profits and gains. At that stage the aggregate of the incomes under other heads and the provisions for set off and carry forward contained in Sections 70, 72 and 74 of the Act would be premature for application. The deductions under Section 10A therefore would be prior to the commencement of the exercise to be undertaken under Chapter VI of the Act for arriving at the total income of....
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....ear of payment in terms of section 192 of the Act treating the same as their salary. Hence in any case, no disallowance u/s 40(a)(ia) of the Act could be made for violation of provisions of section 192 of the Act, if any. With regard to the commission to other directors of the assessee company amounting to Rs. 54,34,446/-, it was pointed out that the said commission is payable to other directors for rendering professional services and not for any services in the course of buying and selling of goods or any assets or valuable thing and therefore the said payments would not fall within the ambit of Commission/ Brokerage as defined u/s 194H of the Act. With regard to applicability of professional fees payable to directors in the form of commission and so as to make applicable the provisions of section 194J of the Act, the same would be applicable only with effect from 1.7.2012 pursuant to amendment in section 194J and hence not applicable for the year under consideration. It was pointed out that in any case, no disallowance u/s 40(a)(ia) of the Act could be made in the year under consideration. 5.2. We find that the ld CITA had duly appreciated these contentions of the assesseeand de....
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....ike other TDS provision, require deduction of tax at source under the head Salaries only "at the time of payment only‟ and not otherwise. The quantum or accrual of expenses is nowhere disputed by revenue. The DR has fairly conceded the above position and therefore, we find no infirmity in the order of CIT(A) and hence, this ground of the revenue is also dismissed. Further, our view is fortified by the decision of Kolkata Tribunal in Jahangir Biri Factory Pvt. Ltd. Vs. DCIT 126 TTJ 567 wherein it has been observed that where commission is paid to directors as per their terms of employment for work done in their capacity as whole time directors, such commission should be treated as an incentive in addition to salary and same would not come within the purview of commission and brokerage as defined in Section 194H nor a fees for Technical services as defined in Section 194J. Similar view has been expressed in Pune Tribunal bench decision in Nashik Metals Pvt. Ltd Vs. ITO 50 Taxmann.com 185." 5.4. Respectfully following the aforesaid decision, we do not find any infirmity in the order of the ld CITA granting relief to the assessee. Accordingly, the Ground Nos. 1 & 2 raised by the....
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....t manufactures Agro Chemicals which are exclusively used for exports. On the other hand, the non-SEZ unit manufactures Agro Chemicals as well as Speciality Chemical which has sales in domestic and international markets. Further the assessee is having a dedicated finance team which is headed by a qualified Chartered Accountant for SEZ as well as non-SEZ unit and the role of finance personnel at corporate office is limited to consolidation of accounts which are audited at the respective end. Similarly there are other functional heads for all the abovementioned functions in both the units separately and their personnel, operational and other expenses are accounted in the concerned units for which they are related according to their roles and responsibility. The assessee also placed reliance on the decisions of the Co-ordinate Bench of this Tribunal in the case of Aditya Birla Nuvo Ltd vs ACIT reported in 68 SOT 403 (Mumbai Trib) ; Grasim Industries Ltd in ITA No. 5630/M/2002 and 1865/M/2003 and in the case of Procter and Gamble Hygiene and Healthcare ltd in ITA No. 1499/M/2005 and ITA No. 1500/M/2005 wherein it was held that the claim of deduction u/s 80IB of the Act should not be red....