2012 (11) TMI 1118 - AT - Income Tax

Issues Involved:
1. Transfer Pricing Adjustment
2. Miscellaneous Income under Section 10A
3. Deemed Exports under Section 10A
4. Exclusion of Foreign Taxes from Export and Total Turnover
5. Software Development Centres Outside India
6. Loss of STP Undertaking
7. Foreign Tax Credit
8. Deduction under Section 80IB
9. Miscellaneous Income under Section 80IB
10. Miscellaneous Income under Section 80IC
11. Interest under Section 234B
12. Interest under Section 234D
13. Depreciation on Imported Software
14. Unavailed Modvat Credit
15. Allocation of Corporate Expenses
16. Realization of Forex after Six Months
17. Reimbursement of Communication Link and Other Sales Performance Linked Incentives
18. Expenditure in Foreign Currency
19. Eligibility for Deduction under Section 10A for Bangalore Units
20. Allocation of Corporate Overhead Expenses for Section 80IB
21. Allocation of Corporate Overhead Expenses for Section 80IC
22. Disallowance of Expenditure Relating to Exempted Dividend Income under Section 14A

Summary:

1. Transfer Pricing Adjustment:
The Tribunal directed the Assessing Officer to follow the directions given in earlier years in the assessee's own case, emphasizing that transfer pricing adjustment is possible only when comparable uncontrolled transactions are established.

2. Miscellaneous Income under Section 10A:
The Tribunal upheld the reduction of miscellaneous income of Rs. 65,550 while computing deduction under Section 10A, as no explanation or material was provided to establish it as business income.

3. Deemed Exports under Section 10A:
The Tribunal dismissed the assessee's claim for deemed exports to be included in export turnover, following earlier decisions in the assessee's own case.

4. Exclusion of Foreign Taxes from Export and Total Turnover:
The Tribunal upheld the exclusion of foreign taxes from export turnover and total turnover, following earlier decisions in the assessee's own case.

5. Software Development Centres Outside India:
The Tribunal remitted the issue back to the Assessing Officer, directing adherence to earlier Tribunal decisions that required establishing the market value of goods or services transferred.

6. Loss of STP Undertaking:
The Tribunal directed the Assessing Officer to set off brought forward losses of units with positive income for the purpose of claiming deduction under Section 10A, following earlier Tribunal decisions.

7. Foreign Tax Credit:
The Tribunal restored the matter to the CIT(A) for reconsideration, following earlier Tribunal decisions that required a detailed examination of the issue.

8. Deduction under Section 80IB:
The Tribunal upheld the exclusion of profit from the sale of monitors and printers from the computation of deduction under Section 80IB, following earlier decisions in the assessee's own case.

9. Miscellaneous Income under Section 80IB:
The Tribunal upheld the exclusion of rental income and provision no longer required from the profits eligible for deduction under Section 80IB, following earlier decisions in the assessee's own case.

10. Miscellaneous Income under Section 80IC:
The Tribunal upheld the exclusion of miscellaneous income of Rs. 4,21,374 from the income of the undertaking at Baddi, H.P., for the purposes of computing the eligible deduction under Section 80IC.

11. Interest under Section 234B:
The Tribunal upheld the charging of interest under Section 234B as consequential and mandatory, directing the Assessing Officer to recompute the interest while giving effect to the order.

12. Interest under Section 234D:
The Tribunal upheld the charging of interest under Section 234D, directing the Assessing Officer to recompute the interest while giving effect to the order.

13. Depreciation on Imported Software:
The Tribunal upheld the allowance of depreciation on imported software, following earlier decisions in the assessee's own case.

14. Unavailed Modvat Credit:
The Tribunal upheld the direction to recast the trading and profit and loss account by including Modvat credit in opening stock, purchases, consumption, and closing stock, following earlier decisions in the assessee's own case.

15. Allocation of Corporate Expenses:
The Tribunal upheld the deletion of allocation of corporate expenses to STP units, following earlier decisions in the assessee's own case.

16. Realization of Forex after Six Months:
The Tribunal directed the Assessing Officer to include in export turnover the collection of sale proceeds in foreign exchange made after the expiry of six months, following earlier decisions in the assessee's own case.

17. Reimbursement of Communication Link and Other Sales Performance Linked Incentives:
The Tribunal remitted the issue back to the Assessing Officer, directing adherence to earlier Tribunal decisions that required considering the reimbursements as part of export turnover.

18. Expenditure in Foreign Currency:
The Tribunal directed the Assessing Officer to follow earlier Tribunal decisions that required including expenditure incurred in foreign currency in export turnover.

19. Eligibility for Deduction under Section 10A for Bangalore Units:
The Tribunal upheld the eligibility of Bangalore units for deduction under Section 10A, following earlier decisions in the assessee's own case.

20. Allocation of Corporate Overhead Expenses for Section 80IB:
The Tribunal upheld the deletion of allocation of corporate overhead expenses to the Pondicherry unit, following earlier decisions in the assessee's own case.

21. Allocation of Corporate Overhead Expenses for Section 80IC:
The Tribunal upheld the deletion of allocation of corporate overhead expenses to the Baddi unit, following earlier decisions in the assessee's own case.

22. Disallowance of Expenditure Relating to Exempted Dividend Income under Section 14A:
The Tribunal restored the issue back to the Assessing Officer, directing adherence to the decision of the Hon'ble High Court of Bombay in the case of Godrej & Boyce Mfg. Co. Ltd.

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