TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 152
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....the business of rendering engineering design services, contract research and development, business process outsourcing, sourcing support and information technology services for its group companies. Further, the assessee also renders services out of the Special Economic Zone units. The assessee filed its return of income on 30.03.2011 declaring a total income of Rs.. 7,64,02,583/-. Under scrutiny, the Assessing Officer determined the same by making adjustment of re-computation of deduction under section 10AA of the Income Tax Act, 1961 ["Act" in short] excluding the foreign currency expenditure, communication and insurance cost from export turnover, re-computation of deduction under section 10AA of the Act by excluding the provisions written back and excess insurance premium received from profits of the undertaking and also disallowance of deposits and other costs written off. As not satisfied with the order of the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A), wherein, the appeal of the was allowed partly by giving relief regarding exclusion of communication and insurance costs. 5. As aggrieved by the order of the ld. CIT(A), the assessee and the Revenu....
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....icer as it was part and parcel of financials vide schedule 14.13.3. On perusal of the same, we note that the particulars relating to travel expenses and information technology & technical support services, professional & consultancy fees, reimbursement of Renault Global Management and reimbursement to Nissan Motor Co. Ltd. were furnished to the extent of Rs.. 39,05,49,881/-, having on record, the Assessing Officer, without examining the same, excluded the expenditure incurred in foreign currency. 10. The ld. AR submits that the issue is squarely covered by the decision of the Hon'ble Jurisdictional High Court of Madras in assessee's own case for the assessment year 2009-10 and drew our attention to page No. 3 of the paper book containing judicial precedents. He referred to the substantial question of law framed at page No. 2 of the said judgement and argued that the Hon'ble High court found the order of the Tribunal fell in error in reversing the order of the DRP, which directed the Assessing Officer not to exclude the expenses incurred in foreign currency from export turnover. On careful reading of the decision of the Hon'ble High Court, we note that the Hon'ble High Court discus....
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....ty and arbitrariness?" 12. We find that the facts before the Hon'ble High Court concerning the assessee in assessment year 2009-10 are that the assessee is a Private Limited Company incorporated under the Companies Act, on 21st September 2007 as a joint venture between Renault Group B.V ("RGBV") and Nissan International Holding B.V ("NIHBV"). The assessee is an undertaking registered as a Special Economic Zone ("SEZ") which is eligible to claim deduction under Section 10AA of the Income Tax Act, 1961 and it renders services out of this SEZ premises in Chennai. The assessee filed its Return of Income for the assessment year 2009 - 10 (hereinafter 'under consideration' for brevity) on 30.09.2009, returning a total income of Rs.. 5,83,39,429/-, after claiming a deduction of Rs.. 29,96,00,054/- under Section 10AA of the Act. The assessment was completed under Section 143(3) of the Act and the Assessing Officer proposed to exclude the following expenditure incurred in foreign currency from the 'export turnover' of the assessee for the purpose of computing deduction under Section 10AA of the Act. Particulars Amount Travel expenses 41,199,254 IT & Technical support s....
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....tantial question of law in affirmative in favour of the assessee by holding that the order of the Tribunal fell in error in reversing the decision of the DRP. Further, it was brought to our notice, that the Assessing Officer has given relief to the assessee in not excluding foreign currency expenditure from export turnover for the assessment years 2013-14 and 2015-16 which is clear from facts of the case at page No. 31 and 32. The ld. DR did not dispute the same. As we discussed the facts and circumstances of the case and also the issue forming part of substantial question of law before the Hon'ble High Court is as similar basing on the same identical facts concerning the issue raised before us in the year under consideration are same, therefore, respectfully following the decision of the Hon'ble High Court, we hold, the order of the ld. CIT(A) is not justified in confirming the order of the Assessing Officer in excluding foreign currency expenditure from the export turnover for the computation of deduction under section 10AA of the Act. Thus, ground No. 2(2.1 to 2.4) raised by the assessee are allowed. 15. Ground No. 2 (2.5 & 2.6) raised by the assessee becomes academic in view o....
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....sing Officer as on today. The ld. DR Shri Nilay Baran Som, CIT did not dispute the same, but, however, prayed to give direction to the Assessing Officer to pass orders in this regard. Accordingly, ground No. 4 raised by the assessee is allowed for statistical purposes. 19. Now, we shall take up appeal in ITA No. 914/Chny/2023 for AY 2011-12. 20. Ground No. 1 is general in nature and requires no adjudication. 21. Ground No. 2 (2.1 to 2.4) raised by the assessee are similar to the ground No. 2 (2.1 to 2.4) in assessment year 2010-11 challenging action of the ld. CIT(A) in confirming the order of the Assessing Officer in excluding expenses incurred in foreign currency from export turnover to an extent of Rs.. 40,31,26,242/- for the purpose of computation of deduction under section 10AA of the Act, the ld. DR has pointed out that the said ground raised by the assessee is not maintainable as the Assessing Officer given relief to the assessee in not excluding the foreign currency from export turnover and drew our attention to the giving effect assessment order dated 29.12.2018, which is at page 32 of the appeal memo. On perusal of the computation of total income at page No. 34 of the ....
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....other income to the extent of Rs.. 41,03,158/-. Therefore, the Assessing Officer is directed to pass order in rectification application filed under section 154 of the Act. Thus, ground No. 3 raised by the assessee is allowed for statistical purposes. 25. Ground No. 4 raised by the assessee challenging double addition of interest from fixed deposits in the computation of income. We find the computation from original assessment order dated 20.03.2015, which is at page 80 of the paper book, wherein, the interest on fixed deposits to an extent of Rs.. 1,55,08,365/- was added by the Assessing Officer which is forming part of profits of business to an extent of Rs.. 57,62,41,994/-. Whereas, on perusal of the computation of total income in giving effect proceedings in pursuance to the directions of the ITAT, which is at page 32 of appeal memo, the Assessing Officer again added Rs.. 1,55,08,365/-, which is clear from page No. 35 of the appeal memo. In this regard, we find that the assessee filed rectification application under section 154 of the Act on 12.02.2019, which is at page 177 of the paper book, and it was submitted by the ld. AR that no decision whatsoever passed by the Assessing....