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TMI Blog2016 (11) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 84,38,357/- as professional and legal charges in relation to taking over the business from Hindustan Motors Ltd incurred during Assessment Year 2006-07. As the expenditure was incurred for the purpose of acquiring a capital asset it was not claimed as revenue expenditure by the assessee. The said professional charges were disallowed by the Assessing Officer but CIT(A) in its finding correctly held that if there is a retrospective amendment then authority with whom the matter is pending becomes legally duty bound to follow the amendment in letter and spirit. Thus, the CIT(A) allowed the additional ground and directed the Assessing Officer to grant the relief u/s 10AA of the Act. Depreciation claim on legal and professional charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 29/10/2007 declaring income of ₹ 34,47,74,641/- and the claim of deduction u/s 10AA of the Income Tax Act, 1961 was made at ₹ 14,83,714/-. A revised return was filed on 31/3/2009 and the claim of deduction u/s 10AA of the Income Tax Act, 1961 was revised at ₹ 5,90,65,188/-. This claim in the revised return was made on the basis of the speech of Hon ble Finance Minister on 24/2/2009 while having discussion on the budget in Lok Sabha and replying to a query. On the basis the speech and since the company did not want to loose its claim of deduction u/s 10AA of the Income Tax Act, 1961 on entire profits of MSEZ, the revised return was field on 31/3/2009. The claim of deduction u/s 10AA of the Income Tax Act, 1961 was enh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 the benefit conferred on to the assessee from 1/4/2010 has been made applicable from 1/4/2006 and shall apply to Assessment Year 2007-08 also. 6. The assessee had made payment of ₹ 84,38,357/- as professional and legal charges in relation to taking over the business from Hindustan Motors Ltd incurred during Assessment Year 2006-07. As the expenditure was incurred for the purpose of acquiring a capital asset it was not claimed as revenue expenditure by the assessee. The said professional charges were disallowed by the Assessing Officer. 7. The assessee filed appeal before the CIT(A). The CIT(A) in its finding held that if there is a retrospective amendment then authority with whom the matter is pending becomes legally duty b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retrospective amendment to Section 10AA (7) through the Finance Act 2010, the benefit conferred on to the assessee from 1/4/2010 has been made applicable from 1/4/2006 and shall apply to Assessment Year 2007-08 also. As regards Ground No. 2, the Ld. AR relied on the ITAT order in assessee s own case for Assessment Year 2006-07 for depreciation claim being ITA No. 1606/DEL/2010 order dated 31.05.2013. In light of this, the professional charges have to be allowed because the expenses incurred by the assessee was as per the agreement and it was not Hindustan Motors which was incurring the expenses. It actually forms the part of actual cost of the acquisition. Therefore, CIT(A) was right in allowing the appeal of the assessee. 12. In result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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