TaxTMI 
TaxTMI 
2024 (11) TMI 1295
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....er section 143 (3 of the income Tax Act, 1961 (the Act) dated 22/1/2016 passed by the Deputy Commissioner of Income Tax, Circle 10 (2) (2), Mumbai (the learned AO) was partly allowed. 2. Assessee is aggrieved with the appellate order has raised several grounds of appeal as under: - "1. On the facts and in the circumstances of the case at in tow the Lit Commissioner of com Appeals or CIT(A) erred in confirming the additions made by the Ld Assessing Officer (AO) of INR 3,82,04,3944 to the returned income of the Appellant The Appellant humbly prays that the additions made by the LS CIT(A)/AD be deleted 2. On the facts and in the circumstances of the case and in law, the Ld CIT(A)/Ld. AD armed in denying deduction of INR 90,33,777 under....
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....seen from the assessment and appellate order shows that assessee is a company engaged in the business of information technology and IT enabled services, filed its return of income on 25/11/2014 at a total income of Rs. 30,599,429/- after setting off of brought forward business losses of Rs. 44,963,298/- and claim of deduction under section 10 AA of the act of Rs. 9,033,777/-. The return of income was picked up for scrutiny and notice under section 143 (2) was issued on 28/8/2015. The claim of the assessee of deduction under section 10 AA of the act was verified the fact mentioned shows that claim of the deduction under section 10 AA of the act of Rs. 9,033,777 is made by the assessee without setting of the brought forward business loss of R....
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....to the deduction under section 10 AA of the act to be allowed to the assessee before setting off of the brought forward business losses of the earlier years, the claim of the assessee was dismissed in view of the decision of the honourable Karnataka High Court in 286 ITR 255 and of the Kerala High Court in 245 CTR 97 wherein it was held that the business profits are to be computed after setting of unabsorbed depreciation and thereafter deduction of section 10 B is to be computed further the circular number 7/2013 dated 16 July 2073 was also against the assessee. Therefore, deduction under section 10 AA of Rs. 9,033,777/- claimed by the assessee was denied. With respect of the disallowance of interest and penalty in view of explanation to se....
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.... precedents including the judicial precedents of honourable Bombay High Court and Honourable Supreme Court along with the coordinate benches. The learned authorized representative relied on the same. 6. The learned Departmental Representative vehemently supported the order of the learned lower authorities and decision cited therein. 7. We have carefully considered the rival contention and perused the orders of the learned lower authorities. 8. Ground number 1 of the appeal is general in nature, no arguments were advanced, therefore, same is dismissed. 9. Ground number 2 of the appeal is with respect to the deduction under section 10 AA of the act. In this case the issue that arises is that assessee has derived the profit of SEZ unit bef....
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....ck & Veatch consulting private limited in 20 taxmann.com 727 has also held that deduction under section 10 A in respect of eligible unit has to be allowed before setting off of brought forward depreciation and losses of non eligible units. Same is the view expressed in case of the Commissioner of Income Tax versus Techno Tarp and Polymers Private Limited in Income Tax Appeal No. 2134 of 2013 dated 5 December 2015. We find that this issue is squarely covered in favour of the assessee by the decision of the honourable Supreme Court in case of 77 taxmann.com 41 and accordingly Ground No. 2 of the appeal of the assessee is allowed. 10. Ground number 3 of the appeal is with respect to the disallowance of Rs. 163,711/- on delayed payment of tax ....
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....se solely and exclusively expended for business purposes; hence it is not deductible under Section 37(1) of the Act. Even if the deduction and remittance of TDS to the government are essential components of business operations, the assessee is nonetheless liable for this interest amount. This suggests that the assessee does not have the right to spend the money on the government's behalf. The character of the interest payment is determined by the sort of tax utilised to pay it. The several decisions of the coordinate benches cited before the learned CIT - A does not hold water in view of the decision of the honourable Madras High Court specifically saying that such interest does not qualify as deductible expenditure. 13. In the result ....