2011 (10) TMI 723 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A)-XIV, Ahmedabad for assessment year 1999-00 and 2000-01.

Issue 1: Disallowance of share issue expenses under section 35D

- The appeal challenged the deletion of disallowance of share issue expenses of Rs. 23,23,312 under section 35D of the I.T. Act.
- The ITAT directed the Assessing Officer to bifurcate the expenses related to shares and debenture expenses, and deferred revenue expenses for proper evaluation, following a similar decision in a previous case.
- The AO was instructed to verify the payment of employees' contribution to PF and ESI before the due date of filing the return for allowance.

Issue 2: Reopening of assessment proceedings and various disallowances for assessment year 2000-01

- The appeal contested the reopening of assessment proceedings u/s.147 of the I.T. Act and various disallowances made by the AO.
- Grounds related to depreciation, set off of interest income against public issue expenses, disallowance under section 35D, and deduction u/s.80IA on 'other income' were discussed.
- The ITAT directed the AO to verify relevant facts and allow the claims based on previous judgments and specific directions.

Issue 3: Disallowance of deduction u/s.80IA on 'other income'

- The Ld. AR presented details of 'other income' including interest income, exchange rate difference, excise credit, and export incentives.
- Certain items were not pressed for want of details, leading to their dismissal.
- The ITAT directed the AO to verify the nexus of interest income and allowed deductions on certain items related to industrial undertakings and business income.

Issue 4: Disallowance of deduction u/s.80HHC

- The Ld. AR did not press this ground, resulting in its dismissal.
- General grounds and those not pressed by the Ld. AR were dismissed as not pressed.
- The ITAT allowed the appeal for statistical purposes based on the discussions and directions provided in the judgment.

This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key arguments and decisions made by the ITAT for each issue raised in the appeal.