| The Tax Publishers2020 TaxPub(DT) 1374 (Mum-Trib) INCOME TAX ACT, 1961
Section 80-IC
Notably, identical issue as to allowing deduction under section 80IC on scrap sales, claims received misc. income, etc. came up for consideration before the Tribunal in assessee's own case for the assessment year 2009-10 while deciding the issue in ITA No. 1299/Mum./2013, dated 20-4-2016 same would be restored to AO following Tribunal's decision in assessee's own case.
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Deduction under section 80-IC - Profits of eligible unit - Scrap sales, claims received, misc. income, sundry balance written back, discount on purchases, etc. -
While examining assessee's claim of deduction under section 80IC, in the course of assessment proceedings, the AO noticed that in the profit & loss account of eligible units claimed deduction under section 80IC, the assessee had included various items of income, such as, scrap sales, claims received, misc. income, sundry balance written back, discount on purchases, etc. AO relying upon the decision of the Supreme Court in Liberty India v. CIt (2009) 317 ITR 218 (SC) : 2009 TaxPub(DT) 2027 (SC) excluded certain items of income as referred to above from the profit of the eligible unit for computing deduction under section 80-IC. This resulted in partial reduction in the quantum of deduction claimed by the assessee under section 80-IC. Though, the assessee objected to the part disallownace of deduction claimed under section 80-IC before Dispute Resolution Panel, however, relying upon their decision in assessee's own case for the assessment year 2010-11, Dispute Resolution Panel upheld the decision of the AO.Held: The issue whether certain items of income, such as, claims received, misc. income, sundry balance written back, etc., can be considered as part of the profits of the eligible unit for computing deduction under section 80-IC. Notably, identical issue came up for consideration before the Tribunal in assessee's own case for the assessment year 2009-10. While deciding the issue in ITA No. 1299/Mum./2013, dated 20-4-2016, the Tribunal following its earlier decision again restored the issue to the AO for fresh adjudication. Facts being identical, following the decisions of the Co-ordinate Bench in assessee's own case as referred to above, Tribunal, restored the issue to the AO for fresh adjudication with similar directions.
Followed:In assessee's own case for the assessment year 2009-10. While deciding the issue in ITA No. 1299/Mum/2013, dated 20-4-2016 and Assessee's own case in assessment year 2010-11 in IT(TP)A No. 1899/Mum/2015, dated 5-9-2019.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 14A Rule 8D
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