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Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2008 (5) TMI AT This

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2008 (5) TMI 681 - AT - Income Tax

  1. 2007 (12) TMI 16 - SC
  2. 2007 (7) TMI 203 - SC
  3. 2007 (4) TMI 202 - SC
  4. 2004 (2) TMI 4 - SC
  5. 2003 (10) TMI 5 - SC
  6. 2003 (1) TMI 8 - SC
  7. 2002 (5) TMI 5 - SC
  8. 2000 (2) TMI 9 - SC
  9. 1999 (9) TMI 1 - SC
  10. 1999 (4) TMI 1 - SC
  11. 1997 (5) TMI 2 - SC
  12. 1991 (11) TMI 2 - SC
  13. 1988 (8) TMI 2 - SC
  14. 1986 (7) TMI 5 - SC
  15. 1985 (4) TMI 64 - SC
  16. 1978 (9) TMI 1 - SC
  17. 1976 (11) TMI 1 - SC
  18. 1966 (10) TMI 44 - SC
  19. 1959 (5) TMI 5 - SC
  20. 2008 (2) TMI 17 - HC
  21. 2007 (8) TMI 255 - HC
  22. 2007 (5) TMI 171 - HC
  23. 2007 (1) TMI 134 - HC
  24. 2007 (1) TMI 102 - HC
  25. 2007 (1) TMI 86 - HC
  26. 2006 (8) TMI 125 - HC
  27. 2006 (2) TMI 131 - HC
  28. 2005 (7) TMI 70 - HC
  29. 2005 (5) TMI 54 - HC
  30. 2003 (10) TMI 35 - HC
  31. 2003 (9) TMI 11 - HC
  32. 2003 (4) TMI 49 - HC
  33. 2003 (1) TMI 89 - HC
  34. 2002 (12) TMI 604 - HC
  35. 2002 (3) TMI 9 - HC
  36. 2002 (3) TMI 10 - HC
  37. 2001 (10) TMI 72 - HC
  38. 2000 (8) TMI 69 - HC
  39. 2000 (8) TMI 73 - HC
  40. 1995 (12) TMI 12 - HC
  41. 1994 (7) TMI 29 - HC
  42. 1994 (4) TMI 4 - HC
  43. 1992 (4) TMI 17 - HC
  44. 1991 (8) TMI 72 - HC
  45. 1990 (11) TMI 65 - HC
  46. 1987 (1) TMI 60 - HC
  47. 1986 (1) TMI 85 - HC
  48. 1985 (11) TMI 10 - HC
  49. 1982 (11) TMI 1 - HC
  50. 1981 (1) TMI 59 - HC
  51. 1978 (8) TMI 19 - HC
  52. 1977 (9) TMI 24 - HC
  53. 1972 (7) TMI 72 - HC
  54. 1970 (7) TMI 15 - HC
  55. 1940 (6) TMI 16 - HC
  56. 2008 (5) TMI 372 - AT
  57. 2008 (2) TMI 486 - AT
  58. 2008 (2) TMI 454 - AT
  59. 2008 (2) TMI 445 - AT
  60. 2008 (1) TMI 452 - AT
  61. 2007 (11) TMI 444 - AT
  62. 2007 (10) TMI 627 - AT
  63. 2007 (10) TMI 630 - AT
  64. 2007 (7) TMI 334 - AT
  65. 2006 (11) TMI 541 - AT
  66. 2006 (8) TMI 448 - AT
  67. 2006 (6) TMI 136 - AT
  68. 2006 (4) TMI 340 - AT
  69. 2006 (1) TMI 465 - AT
  70. 2005 (11) TMI 176 - AT
  71. 2005 (10) TMI 212 - AT
  72. 2005 (6) TMI 210 - AT
  73. 2005 (5) TMI 654 - AT
  74. 2004 (6) TMI 322 - AT
  75. 2004 (3) TMI 318 - AT
  76. 2003 (3) TMI 261 - AT
  77. 2003 (1) TMI 265 - AT
  78. 2002 (11) TMI 745 - AT
  79. 2002 (7) TMI 220 - AT
  80. 2001 (1) TMI 234 - AT
Issues Involved:
1. Allocation of corporate expenses to s. 10A units.
2. Exclusion of various incomes from export turnover for s. 10A deduction.
3. Exclusion of certain incomes for s. 80HHC deduction.
4. Eligibility of deduction under s. 10A for deemed exports.
5. Allowability of deduction under s. 80-IB on AMC receipts and sale of monitors.
6. Treatment of foreign taxes in export turnover.
7. Allowability of long-term capital loss on sale of shares.
8. Charging of interest under s. 234B and s. 234D.

Summary:

1. Allocation of Corporate Expenses to s. 10A Units:
The Tribunal upheld the CIT(A)'s decision to vacate the allocation of corporate expenses made by the AO to s. 10A units, following the Tribunal's earlier decision. The AO's detailed analysis of expenses and application of s. 14A was not accepted as there was no prescribed method for determining such expenses during the relevant assessment year.

2. Exclusion of Various Incomes from Export Turnover for s. 10A Deduction:
The Tribunal confirmed that export incentives, rent, interest, and exchange fluctuation should not be excluded from the receipts while computing deduction under s. 10A, following earlier Tribunal decisions. The Tribunal also held that the foreign exchange gain due to fluctuation is part of the profit of the undertaking eligible for deduction under s. 10A.

3. Exclusion of Certain Incomes for s. 80HHC Deduction:
The Tribunal upheld the CIT(A)'s direction to exclude excise duty and sales-tax from the total turnover for computing deduction under s. 80HHC, following the Supreme Court's decision in CIT vs. Lakshmi Machine Works. The Tribunal also confirmed that 90% of difference in exchange, royalty, provision for doubtful debts written back, scrap sales, and sundry creditors/other credit balances written back should not be excluded from the profits of the business.

4. Eligibility of Deduction under s. 10A for Deemed Exports:
The Tribunal confirmed that deemed exports cannot be treated as part of export turnover for computing deduction under s. 10A, following its earlier decision in Tata Elxsi Ltd. vs. Asstt. CIT.

5. Allowability of Deduction under s. 80-IB on AMC Receipts and Sale of Monitors:
The Tribunal upheld the CIT(A)'s decision that AMC income and profit from the sale of monitors are not derived from the industrial undertaking and hence not eligible for deduction under s. 80-IB.

6. Treatment of Foreign Taxes in Export Turnover:
The Tribunal held that foreign taxes should not be included in the export turnover as they are not part of the consideration received in convertible foreign exchange. If the turnover includes foreign taxes, then the expenditure will be allowed as a deduction for computing profit.

7. Allowability of Long-term Capital Loss on Sale of Shares:
The Tribunal allowed the claim for long-term and short-term capital loss on the sale of shares of WFL, following its earlier decision for the previous assessment year.

8. Charging of Interest under s. 234B and s. 234D:
The Tribunal held that interest under s. 234B is mandatory and consequential. Interest under s. 234D is chargeable when the regular assessment is made on or after 1st June 2003, irrespective of the assessment year, following its decision in Sigma Aldrich Foreign Holding Co. vs. Asstt. CIT.

 

 

 

 

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