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The Tax PublishersITA No. 602/Mum/2021
2022 TaxPub(DT) 4744 (Mum-Trib)INCOME TAX ACT, 1961
Section 80-IA
In view of decisions of CIT(A) and Tribunal in assessee's own case for earlier assessment years, Director's remuneration and Auditor's remuneration should be allocated proportionately as calculated by AO and legal and professional Expenses and travelling expenses were found to be acceptable as done by the assessee. Accordingly, matter was remanded to the AO to examine such earlier precedents settled in the assessee's own case.
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Deduction under section 80-IA - Disallowance of common expenses against deduction claimed under section 80-IA - -
Assessee-company was engaged in business of raising of ore, manufacture of nitrogen gas and ferro alloys, generation of electricity (wind power and solar power) etc. AO made disallowance of common expenses against deduction claimed under section 80-IA. He held that profits showed under section 80-IA units appeared to be higher than actual profit on account of not debiting of expenses in respect of travelling and conveyance to units claimed deduction under section 80-IA. He therefore allocated additional travelling expenses to the 80-IA units, in the ratio of their turnover to the total turnover and thus reduced deduction under section 80-IA by equivalent amount. On appeal, CIT(A) upheld the disallowance. Held: In view of decisions of CIT(A) and Tribunal in assessee's own case for earlier assessment years, Director's remuneration and Auditor's remuneration should be allocated proportionately as calculated by AO and legal and professional Expenses and travelling expenses were found to be acceptable as done by the assessee. Accordingly, matter was remanded to the AO to examine such earlier precedents settled in the assessee's own case.
REFERRED :
FAVOUR : Matter remanded
A.Y. :
INCOME TAX ACT, 1961
Section 4
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