TaxTMI 
TaxTMI 
2023 (7) TMI 687
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....acts and in the circumstances of the case, the deduction claimed by the appellant-assessee under section 10A of the Income-tax Act, 1961 having been allowed for the assessment year 1997-98, which was the initial year of claiming deduction ; and having also been allowed for the assessment years 1999-2000 and 2000-2001, the Income-tax Appellate Tribunal was justified in upholding disallowance made by the Assessing Officer for the assessment year 2003-04, despite the indisputable fact that the appellant has satisfied all the conditions for claiming the deduction in question under section 10A of the Act ? 2. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in upholding the disallowance mad....
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.... Sanmathi, learned standing counsel for the Revenue. 3. At the outset, Shri Suryanarayana submitted that question Nos. 1 and 2 are covered by the decision in CGI Information Systems and Management Consultants Pvt. Ltd. v. ITO [2023] 455 ITR 265 (Karn), in assessee's own case in I. T. A. No. 608 of 2016 decided on October 31, 2022. Question No. 5 does not arise for consideration in this appeal. Hence, the remaining questions for consideration are 3, 4 and 6. 4. Question No. 3 is with regard to annual subscription licence fee in respect of Microsoft Software licence. The AO Assessing Officer has held that the said expenditure is a capital expenditure. The said view has been con- firmed by the CIT (A) Commissioner of Income-tax (Appeals)....
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....tion of the said right is allowable as revenue expenditure and these softwares if they are licensed for a particular period, for utilizing the same for the subsequent years fresh licence fee is to be paid. Therefore, without renewing the licence or without paying the fee on such renewal, it is not possible to use those software in those circumstances the findings recorded by the authorities that the fee paid for obtaining the software and the licence and for renewing the same is to be construed as only revenue expenditure . . ." (emphasis supplied) 9. We are in respectful agreement with the authority in Toyota Kirloskar Motors. Hence, this question needs to be answered in favour of the assessee. 10. Question No. 4 is disallowance of provi....
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.... Provision for L.T.A 574,080 A/P Project bonus 300,000 Provision for per diem 1,876,318 India Satcom Payment 400,000 Per diem another expense 1,533,904 Total 5,608,053 13. Thus, the Commissioner of Income-tax (Appeals) had the benefit of these figures which were reflecting in the books of account. The assessee had made provision in respect of the above expenditure. We have also noticed that in addition to the above seven heads, provisions were made for three more heads and the same have been allowed. As submitted by Shri Suryanarayana, disallowance made by the Assessing Officer has been set aside by the Commissioner of Income-tax (Appeals), resultantly, the provision has been allowed. 14. The contention urged on be....
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....red loss on SEEPZ, Mumbai unit. Therefore, they have opted not to claim deduction under section 10A only for this particular year and re-entered the scheme in any way such an exit and re-entry is not allowable. Just because the assessee undertaking has no profit during the year and therefore the assessee cannot claim refund of the withholding taxes deducted in USA and Canada. The claim of the assessee has been examined. It was seen that only in this particular year the assessee has made the claim of refund of taxes deducted in USA and Canada. In this matter reliance is placed on the judgment of the hon'ble Income-tax Appellate Tribunal, Mumbai Bench in the case of Jt. CIT v. Digital Equipments India Ltd. reported in [2005] 277 ITR (A.....
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....1,32,90,110. For the reasons stated in paras 9.3 and 9.4 the tax credit has been denied and the said view has been approved by the CIT (A) and the ITAT. 19. Shri Suryanarayana contended that the assessee has two units, one in Mumbai and another in Bangalore. Mumbai unit has incurred loss and Bangalore unit is making profit. The assessment order covers both units. The Assessing Officer has assessed income and, therefore, the assessee is liable to pay tax. The assessee has also paid tax both in the USA and Canada, therefore under the DTAA Double Taxation Avoidance Agreement, the assessee is entitled for tax credit. 20. Shri Sanmathi's argument is that the assessee has availed of deduction under section 10A. Therefore, the assessee is no....