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2024 (5) TMI 152 - AT - Income TaxComputation of deduction u/s 10AA - excluding expenses incurred in foreign currency from export turnover for the purpose of computation - HELD THAT - As referring to High Court of Madras 2020 (8) TMI 19 - MADRAS HIGH COURT against 2016 (11) TMI 1670 - ITAT CHENNAI order dated 16.11.2016 in ITA No. 1009/Mds/2014 hold that the order of the ld. CIT(A) is not justified in confirming the order of the Assessing Officer in excluding foreign currency expenditure from the export turnover for the computation of deduction under section 10AA of the Act. Double addition of interest from fixed deposits in the computation of income - HELD THAT - On perusal of the computation of total income in giving effect proceedings in pursuance to the directions of the ITAT AO again added sum which is clear from appeal memo. In this regard we find that the assessee filed rectification application under section 154 and it was submitted by the ld. AR that no decision whatsoever passed by the Assessing Officer as on today. CIT did not dispute the same but however prayed to give direction to the Assessing Officer to pass orders in this regard. Accordingly ground No. 4 raised by the assessee is allowed for statistical purposes. Short grant of TDS credit - HELD THAT - DR prayed to give a direction to the Assessing Officer to give full TDS credit as was given in the original assessment proceedings order dated 20.03.2015. We order accordingly. Thus the ground No. 5 raised by the assessee is allowed for statistical purposes.
Issues Involved:
1. Exclusion of expenses incurred in foreign currency from export turnover for the purpose of computation of deduction u/s 10AA of the Income Tax Act. 2. Inclusion of disallowance/addition as profits of the business in the computation of deduction u/s 10AA of the Act. 3. Double addition of interest from fixed deposits in the computation of income. 4. Granting TDS credit. Summary: Issue 1: Exclusion of Foreign Currency Expenses The assessee challenged the CIT(A)'s confirmation of the Assessing Officer's decision to exclude expenses incurred in foreign currency from export turnover for the purpose of deduction u/s 10AA of the Income Tax Act. The Tribunal noted that the Assessing Officer did not examine the details provided by the assessee regarding these expenses. The Tribunal found that the issue was covered by the decision of the Hon'ble Jurisdictional High Court of Madras in the assessee's own case for AY 2009-10, which held that such expenses should not be excluded from export turnover. Consequently, the Tribunal allowed the assessee's grounds on this issue. Issue 2: Inclusion of Disallowance/Addition as ProfitsThe assessee raised an additional ground regarding the non-inclusion of disallowance/addition as profits of the business in the computation of deduction u/s 10AA. The Tribunal noted that the CIT(A) had not adjudicated this issue and directed the CIT(A) to dispose of the matter by affording an opportunity of being heard to the assessee. Issue 3: Double Addition of Interest from Fixed DepositsThe assessee contended that there was a double addition of interest from fixed deposits in the computation of income. The Tribunal observed that the Assessing Officer had added the interest twice and noted that the assessee had filed a rectification application u/s 154 of the Act, which was still pending. The Tribunal directed the Assessing Officer to pass orders on the rectification application, thus allowing the assessee's ground for statistical purposes. Issue 4: Granting TDS CreditThe assessee challenged the CIT(A)'s confirmation of the Assessing Officer's decision to grant TDS credit only to the extent of Rs. 4,33,05,944/- as against Rs. 4,44,92,327/-. The Tribunal noted that the original assessment order had granted the full TDS credit and directed the Assessing Officer to give full TDS credit as was given in the original assessment proceedings, thereby allowing the assessee's ground for statistical purposes. Conclusion:Both appeals filed by the assessee are partly allowed for statistical purposes. Order pronounced on 30th April, 2024 at Chennai.
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