TaxTMI 
TaxTMI 
2025 (11) TMI 1901
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....on examination leave for CPA and, thereafter, she did not resume her duties but tendered her resignation and left the service without reporting the pending work/matters. Subsequently, her successor in the office, on receiving the notice of penalty under Section 270A of the Act, had enquired about the status of the appeal against the order of the Ld. CIT(A). Thus, the assessee became aware of the order of the Ld. CIT(A) only after receiving the penalty notice and, thereafter, the appeal was immediately filed and, in the process there was this delay in filing the appeal. It is submitted that the delay was not intentional and accordingly the request was made to condone the delay. Considering the explanation of the assessee, the delay in filing the present appeal is condoned. 3. The brief facts of the case are that the assessee had filed its return of income for the A.Y. 2017-18 on 29.11.2017 declaring income of Rs. 13,02,05,080/-. The case was selected for complete scrutiny. The assessee is engaged in the business of instant quick frozen of vegetables and fruits and the products are mainly exported out of India. In the course of assessment, the Assessing Officer had made the follow....
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....d. CIT(A)has erred in confirming the addition of Rs. 78,23,000/- towards MHB Cold Storage as revenue receipt. 5.1 The Id. CIT(A) has grievously erred in law and or on facts in confirming the withdrawal of deduction u/s 80IB of Rs. 21,83,404/-. The working of deduction u/s 80IB is erroneous. 5.2 That in the facts and in the circumstances of the case the ld. CIT(A) has erred in withdrawing deduction u/s 80IB of Rs. 21,83,404/-. It is, therefore, prayed that the additions upheld by the CIT(A) may kindly be deleted." 6. Shri S.N. Divatia, Ld. AR of the assessee, did not press ground nos.1 & 2. Hence, these two grounds are dismissed. 7. Ground no.3 pertains to disallowance of claim of deduction of Rs. 56,56,433/- made under Section 80JJAA of the Act. The Ld. AR explained that the assessee had claimed this deduction in respect of emoluments made to additional employees, employed during the year. He explained that during the year, 362 additional employees were added, out of which only 274 employees were eligible for deduction under Section 80JJAA of the Act. In the course of assessment, the assessee had produced evidences in respect of their employment, sa....
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....anufacturing of apparel or footwear or leather products, the provisions of subclause (c) shall have effect as if for the words "two hundred and forty days", the words "one hundred and fifty days" had been substituted: Provided further that where an employee is employed during the previous year for a period of less than two hundred and forty days or one hundred and fifty days, as the case may be, but is employed for a period of two hundred and forty days or one hundred and fifty days, as the case may be, in the immediately succeeding year, he shall be deemed to have been employed in the succeeding year and the provisions of this section shall apply accordingly; 9.1 Thus, in order to be eligible for deduction u/s 80JJAA of the Act the assessee was required to establish that the new employees were not paid emoluments of more than Rs. 25,000/- per month, they had participated in recognised provident fund and pension scheme and they had worked for not less than 240 days during the year. Another condition to be satisfied in respect of this claim was that the emoluments were paid through account payee cheque/account payee draft or by way of electronic clearing system through b....
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....Storage subsidy. The Ld. AR explained that the assessee had received this subsidy from the Government of Gujarat for meeting the expenditure relating to new cold storage project under expansion during the year. He explained that since the subsidy was towards the cost of capital asset, it was capital in nature and the subsidy amount was deducted from capital work-in-progress on gross basis. He further submitted that as the cold storage project was not put to use, no depreciation was claimed during the year. Further, that the subsidy amount being capital in nature, was not credited to Profit & Loss account. The Ld. AR submitted that considering the specific purpose for which the subsidy was received, the Assessing Officer was not correct in treating the same as revenue receipt. 11. Per contra, Ld. Sr. DR submitted that the assessee did not furnish the working of the capital work-in-progress before the Assessing Officer and, therefore, the contention of the assessee that the subsidy amount was reduced from the capital work-in-progress could not be verified. Further that the assessee had also failed to establish the final treatment of the subsidy granted to it by the Government of G....
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....ct. The Ld. AR explained that the assessee had furnished working of deduction claimed under Section 80IB of the Act before the Assessing Officer. While working out the deduction, the assessee has reduced duty draw back receipt of Rs. 55,50,409/- from the business income. The Assessing Officer had, however, noticed that the assessee had disclosed duty drawback of Rs. 1,28,28,423/- in its Profit & Loss Account and accordingly it was required to reduce the entire amount of Rs. 1,28,28,423/- from the business profit. Since the assessee had reduced Rs. 55,50,409/- only on account of duty drawback, the Assessing Officer had withdrawn the deduction claimed in respect of balance duty drawback of Rs. 72,78,014/-. The Ld. AR explained that subsequently the Assessing Officer had passed rectification order and 80IB deduction @ 30% on the amount of Rs. 72,78,014/-, which was Rs. 21,83,404/-, was disallowed by the Assessing Officer. 13.1 As regarding merit of the claim, the Ld. AR submitted that the amount of Rs. 72,78,014/- was received towards transportation assistance from Government of India for promotion of export of fruits and vegetable and other products and, therefore, this income was....