9911796707
TMI Blog2012 (7) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... fully submits the following grounds of objection: Based on the facts and circumstances of the case and in law, the order passed by the Assistant Commissioner of Income Tax, Circle 12(1) New Delhi ("the Learned AO") under section 143(3) read with section 144C of the Act, on the directions of the Hon'ble Dispute Resolution Panel ('Hon'ble DRP') is bad in law and void ab- initio. 1.1 That on facts and in law, while passing the assessment order, the Learned AD has erred in computing the total income of the Appellant at Rs. 46,64,427 as against returned income of Rs 12,17,712 and therefore, the order of the Learned AO is bad in law and needs to be annulled. Based on the facts and circumstances of the case and in law, the Hon'ble DRP has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the undertaking while computing the deduction under section 10A of the Act. Therefore, excluding the profit on disposal of assets twice is not justified. Based on the facts and circumstances of the case and in law, the Hon'ble DRP and thereafter the Learned AO has erred in not passing a speaking order thus violating principles of natural justice. Based on the facts and circumstances of the case and in law, the Learned AO erred in charging interest under section 234B of the Act. Based on the facts and circumstances of the case and in law, the Learned AO has erred in initiating penalty proceedings under section 271 (1 )(c) of the Act. The above grounds of appeal are mutually exclusive & without prejudice to each other. The Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of calculation of exempt profit u/s 10A of the Act. 4. The Ld AR argued before us that interest on fixed deposit and profit on disposal of assets has already been reduced from computation of income for the calculation of exempt profit u/s 10A. In this respect, he took us to page 2 of the paper book, where he invited our attention towards the reduction made while calculating the exempt income u/s 10A. As regards misc. income of Rs. 9,35,639/-, the Ld AR argued that misc. income has arisen during the course of business of assessee and is therefore part of business profits of the assessee eligible for deduction u/s 10A. In this respect he relied upon the judgment of ITAT Delhi Benches in the case of Birla Software India Ltd. v. DCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any income which could have gone to reduce the expenses of the assessee then that income can definitely be considered as income from undertaking eligible for exemption u/s 10A. The citation relied upon by the Ld AR clarifies that if the nature of income is such which could be said to have reduced the expenses of a particular head, it will be part of business income. The nature of this income in the present case is not clear from the facts of the case, therefore, we remit the case to the file of Assessing Officer on this point to first give a finding on the nature of misc. income and allow it accordingly as per law keeping in view the nature of income. 7. The charging of interest u/s 234B & initiation of penalty proceedings u/s 271 (1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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