TaxTMI 
TaxTMI 
2023 (8) TMI 1649
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....ppeals except one are common and covered in favour of assessee in assessee's own case for AY 2008-09. Accordingly the grounds in respective appeals are determined with grounds for AY 2009-10 being reproduced below; "1) The Learned Commissioner of Income Tax (Appeals) has erred both on facts and in law in partly confirming the action of the learned Assessing Officer in reducing the deduction claimed u/s 80IC of the Income Tax Act, 1961 by Rs. 19,998/-allegedly on the ground that transfer from Non-80IC to 80IC units has not been made at the market value so as to take the tax advantage. 1.1) The Learned Commissioner of Income Tax (Appeals) has erred both on facts and in law in not adjudicating upon the appellant company's grievance that the AO had incorrectly reduced the deduction u/s 80IC by Rs.1,32,23,357/- on the ground that the allocation of Head office expenses had not been made to 80IC units. 2) The learned Commissioner of Income Tax (Appeals) has erred both on facts and in law in upholding the action of the learned Assessing officer in reducing the deduction claimed u/s 10A by Rs.19,80,818/- alleged on the ground that export proceeds amounting to Rs.1,90,30,863/- ....
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.... transfer to panel unit are customer specific product and of different strength and specification therefore, they cannot be compared with the similar components company sold in the open market. The AO had made the adjustment due to the market value of the inter unit transfer but could not discharge the onus which in our opinion lie on him to ascertain the market value in respect of the component which were transferred by the assessee from one unit to the other unit. The onus lies on the AO to bring the comparative instance if the AO was not able to bring any comparative instance, he should adopted the market value on the basis of the value as determined by the Government of India, Excise Department i.e cost plus 10%. Ignoring this value in our opinion, will tantamount to that provision of section 80IA(a) of the Act has not been correctly applied by the AO and, therefore on the basis itself ignoring the alternate contentions of the assessee that if any deduction has to be reduced u/s 80IC in respect of Panel Division that has to be reduced only by Rs.28,405/ -. We allow Ground No. 1 taken by the assessee and set aside the order of the Ld. CIT(A) confirming the reduction of the deduc....
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....hat the export proceeds have not been received with in prescribed time limit laid under sub section 3(A) of Section 10A of the Act. Ld. AR has submitted that the Master Circular issued by the Reserve Bank of India in regard to export made by a SEZ unit provide that no time limit has been prescribed for such units. It was submitted that Ld. CIT(A) should have considered the Master circular. It was further submitted that the amount of export proceeds Rs. 1,90,30,863/- was realized by 19.02.2010 and the amendment brought with effect from 10.02.2006 introduced section 10A(7B) excluding SEZ units from Section 10A of the Act and the SEZ units are covered u/s 10AA wherein there is no time limit for inward remittance. 8. In regard to this issue it can be observed that the copy of Master Circular available at page no. 414 of the paper book shows that the 1st July, 2008 Master Circular no. 09/2008-09 of the RBI provides that in case of units in the Special Economic Zone there is no specific time period for realization and repatriation of export proceeds. Ld. CIT(A) has not followed the same with observation in para 4.4.2 that the Master Circular is effective from 01.07.2009, therefore, the ....
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.... Circular dated 01.07.2009 had sustained the disallowance of deduction u/s 10B. The Master Circular provided that in respect of exports made by EOU units the realization of export proceeds has to be within 12 months from the respective date of exports and the fact which was required to be verify by Ld. AO, in fact stood established and no inquiry was accordingly required. Accordingly, this ground is decided in favour of assessee. 11. Ground no. 3. Ld. AO has disallowed 20% of the foreign travel expenses by categorizing that as personal expenses. Ld. CIT(A) allowed expenses of air tickets and of hotels, but confirmed personal at 30% of expenses against foreign currency and credit cards. Ld. AO pointed out that as the provisions of fringe benefit tax are applicable there can be no disallowance on account of personal expenses. The matter is covered in favour of the assessee in A. Y. 2008-09 wherein para 15 it has been observed as follows ; "15. Ground No.4 in assessee's appeal as well as in revenue's appeal related to the reducing and sustenance of the disallowance out of the foreign travel expenses. The facts relating to this ground are that the AO disallowed 20% of Rs. 16....