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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 ..... ance of deduction of Rs. 5,75,82,474/-, u/s 10AA of the IT Act, as against claim of Rs. 14,83,714/- made by the assessee and allowed by A.O. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing the claim of depreciation of Rs. 8,60,411/- on capitalization of legal & professional charges." 3. The assessee is having a manufacturing unit at Madras SEZ in respect of which the claim of deduction u/s 10AA of the Income Tax Act, 1961 was made by the assessee. The original return was filed on 29/10/2007 declaring income of Rs. 34,47,74,641/- and the claim of deduction u/s 10AA of the Income Tax Act, 1961 was made at Rs. 14,83,714/-. A revised return was filed on 31/3/2009 and the claim of deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is Rs. 2000, then the profits eligible for deduction u/s 10AA of the Act is Rs. 100x 500/2000=Rs 25. 5. By the virtue of the retrospective amendment, instead of Rs. 2000 (total turnover) being taken for the computation of deductible export profits, Rs. 500 (total turnover of the undertaking) is to be taken. This means that the eligible profits for deduction will be Rs. 100 and not Rs. 25. Now by the retrospective amendment to Section 10AA (7) by 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. 6. The assessee had made payment of Rs. 84,38,357/- as professional and legal charges in relation to taking over the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) and submitted that the retrospective amendment is applicable in assessee's case as the assessment year is on 2007-08 and the amendment is effective from 1.4.2006 which came into picture by Finance Act, 2010. As relates to the second ground, the Ld. AR relied upon the order of the CTIA(A) 11. We have perused all the records and heard both the parties, As relates to Ground No. 1 retrospective amendment is very much applicable to the assessee. By the 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 asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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