9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 920 - AT - Income TaxRectification u/s 254 - deduction u/s. 10A - claim of unexpired period of 10 consecutive assessment years as available in the unamended provision - whether the assessee had claimed and obtained exemption in the years earlier to the amendment of section 10A by Finance Act, 2000 with effect from 01.04.2000? - HELD THAT - The assessee was eligible to the benefit of claim u/s. 10A for the assessment year 2002-2003, even after amendment to section 10A. Further, the ITAT stated that deduction u/s. 10A cannot be granted if it relates to Individual Quick Freezing (IQF), even though it relates to unexpired period of entitlement as per the provisions prior to the amendment. The observation of the Tribunal in its order dated 06.03.2019 is error apparent. It clear that for the unexpired period of entitlement of deduction u/s. 10A the assessee would be entitled to the said claim, even if it relates to IQF, provided the assessee had made claim u/s 10A and the A.O. had granted deduction for the assessment year s prior to amendment. The above view was also taken by the Hon ble High Court in assessee s own case 2018 (8) TMI 985 - KERALA HIGH COURT . The judgment of the Hon ble High Court, regarding 10A deduction claim that it is entitled to IQF with regard to processing of prawns undertaken by the assessee for the unexpired period of 10 consecutive years as available in the unamended provision. We direct the AO to compute deduction u/s. 10A in respect of the unexpired period of 10 consecutive assessment years as available in the unamended provision.
Issues:
1. Deduction u/s 80HHC of the I.T. Act. 2. Claim of deduction u/s 10A of the I.T. Act. Issue 1: Deduction u/s 80HHC of the I.T. Act The Hon'ble High Court of Kerala, in a judgment dated 07.08.2018, directed the Tribunal to reconsider two issues: deduction u/s 80HHC and claim of deduction u/s 10A of the I.T. Act. The Tribunal, in its subsequent order dated 06.03.2019, addressed the matter. The High Court emphasized that for the subject year, mere processing does not entitle a claim under Section 10A and that undertakings entitled under the earlier provision would continue to be entitled for the unexpired period of entitlement as per the earlier provision. The Tribunal, in its order, acknowledged the eligibility of the assessee for the benefit of claim u/s 10A for the relevant assessment year. However, the Tribunal also noted that deduction u/s 10A cannot be granted if it relates to Individual Quick Freezing (IQF), as clarified by the High Court. The Tribunal's observation on this matter was deemed an error apparent from the record. Issue 2: Claim of deduction u/s 10A of the I.T. Act The High Court's judgment clarified that if the assessee had claimed deduction u/s 10A and the Assessing Officer had allowed the same under the provisions prior to the amendment, the assessee would continue to benefit for the unexpired period. The Tribunal, in its subsequent order, initially stated that the assessee was eligible for the benefit of the claim u/s 10A for the relevant assessment year. However, the Tribunal's order also mentioned that deduction u/s 10A could not be granted if it related to IQF, as per the High Court's direction. The Tribunal's observation on this matter was considered an error apparent from the record, and it was clarified that the assessee would be entitled to the claim, even if it related to IQF, provided the claim was made and granted for assessment years prior to the amendment. In conclusion, the Tribunal allowed the Miscellaneous Petition filed by the assessee for statistical purposes, directing the Assessing Officer to compute the deduction u/s 10A of the I.T. Act for the unexpired period of 10 consecutive assessment years as available in the unamended provision, in accordance with the High Court's judgment and clarification.
|
