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TMI Blog2016 (2) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... itted back to the file of the Assessing Officer to verify the due date for filing return of income under Section 139(1) for the respective assessment years. After verification, if the Assessing Officer found that the return of income was filed within the due date specified under Section 139(1), then the assessee is eligible for deduction under Section 10A of the Act. If, for any reason, if the Assessing Officer came to a conclusion that the return of income was not filed under Section 139(1), then the assessee is not eligible for deduction under Section 10A of the Act. Therefore, for a limited purpose of verifying the due date for filing the return of income under Section 139(1) of the Act, the matter is remitted back to the file of the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in all these appeals, we heard all these appeals together and disposing of the same by this common order. 2. Dr. Milind Madhukar Bhusari, the Ld. Departmental Representative, submitted that the first issue arises for consideration is with regard to deduction claimed by the assessee under Section 10A of the Income-tax Act, 1961 (in short 'the Act') According to the Ld. D.R., the assessee claimed deduction under Section 10A of the Act and the Commissioner granted the deduction by directing the Assessing Officer to reduce the foreign currency expenses from total turnover. According to the Ld. D.R., for claiming deduction under Section 10A of the Act, the assessee is expected to file return of income within the time specified under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relevant material available on record. In respect of foreign currency expenses, what is excluded in the export turnover has also to be excluded from total turnover. In other words, numerator and denominator should be of the same figure. Since the Assessing Officer has excluded from export turnover, the same has also to be excluded from total turnover. For the purpose of claiming deduction under Section 10A of the Act, the assessee has to necessarily file the return of income within the time prescribed under Section 139(1) of the Act. The due date specified under Section 139(1) of the Act is the date specified under Section 139(1) and not under Section 139(4) of the Act. Therefore, merely because the assessee filed return of income wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee now claims that the returns of income for the assessment years 2006-07 and 2010-11 were filed within the due date. However, for the assessment years 2008-09 and 2009-10, it was not filed within the due date specified under Section 139(1) of the Act. On perusal of the assessment order, it appears that for the assessment year 2006-07, the assessee filed return of income on 30.11.2006. It is not known what was the due date for filing return of income for the assessment year 2006-07. Similarly, for other assessment year also it is not clear from the orders of the lower authorities the due date for filing return of income under Section 139(1) of the Act specified by the CBDT. Therefore, the order of the CIT(Appeals) is set aside on this iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds of 100% subsidiary companies. In fact, the assessee has received income only from the Bangalore subsidiary company, where the investment was about ₹ 9 Crores. The subsidiary company is also engaged in I.T. business and the investment is in the nature of capital. According to the Ld. counsel, the initial investment was made during financial year 2001-02 and subsequently it was emphasized that the object of the investment was not to earn the dividend income but for commercial expediency. 9. We have considered the rival submissions on either side and perused the relevant material available on record. Section 14A of the Act provides for disallowance of expenditure incurred by the assessee for earning the income which does not form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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