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TMI Blog2018 (9) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... peals of the Revenue are hit by the CBDT Circular and hence not maintainable. Besides that ld.DR has not pointed out whether the case of the Revenue fall within the ambit of exceptions provided in the Circular or not. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeals of the Revenue deserve to be dismissed. They are accordingly dismissed. - ITA No. 98 /Ahd/2016, ITA No.239 and 240 /Ahd/2016 - - - Dated:- 30-8-2018 - Shri Rajpal Yadav, Judicial Member And Shri Waseem Ahmed, Accountant Member Assessee by : Shri S. N. Soparkar with Smt. Urvashi Shodhan, AR Revenue by : Shri S. K. Dev, Sr.DR ORDER Per Rajpal Yadav, Judicial Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in holding that the assessee was not entitled to claim deduction u/s 80HHE of the Act on the other income of ₹ 4.71 lakhs; and in ground No.4 that the CIT (A) erred in not passing a speaking order in relation to ground Nos. 8(k), 8(l) and 8(m) were not pressed during the course of hearing before this Bench. Thus, ground Nos.1 and 4 are dismissed as 'not pressed'. In the remaining grounds, the cruxes of the issues raised are reformulated as under: (1) that the CIT (A) erred in holding that the traveling expenses of ₹ 1,32,52,859/- in relation to the seconded employees; (2) that the CIT (A) erred in upholding that the disallowance of ₹ 5,61,000/- towards legal fees paid to Baker Mckinsey being nonbusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of section 14A in relation to earning of tax free income, were remitted by the Tribunal to the AO for re-adjudication. The ld.AO has decided these issues. He again excluded the foreign exchange fluctuation gain from computation of section 10A. On appeal, the ld.CIT(A) has allowed this ground of appeal of the assessee and held that it is entitled for deduction under section 10A on the foreign exchange fluctuation gain. Similarly, the ld.CIT(A) restricted the disallowance under section 14A. The relief given by the ld.CIT(A) are being impugned by the Revenue before the Tribunal by way of the following grounds: 1. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance made on account of foreign exchange gain of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned AO') and Learned CIT(A) ought to have appreciated the following: i. Each eligible undertaking is an independent and distinctive business unit and deduction under section 10A of the Act should be computed specific to eligible undertaking instead of computing such deduction after setting-off of losses of eligible and non-eligible units. ii. Losses of eligible non-eligible undertaking should be set-off after computing under section 10A deduction of the profits of eligible undertaking. iii. Losses of eligible non-eligible units for current year can be setoff against total profits and gains of business for the current year under section 70 of the Act under the same head of income. Balance loss, if any would be eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue. No such issue was ever raised. Thus, scope before the AO to entertain any other issue, except the issue remitted by the Tribunal, was not available. Consequently, no fresh issue can be raised by the assessee before the Tribunal in this round of litigation, otherwise, there will never be a finality of the proceedings before the Tribunal. Since the issue itself cannot be taken up, therefore, there is no need to examine it on merit. The ground of appeal raised by the assessee is rejected. 8. So far as appeals of the Revenue are concerned, tax effect by virtue of relief given by the ld.CIT(A) is below ₹ 20 lakhs. Similarly, in the assessment year 2004-05 identical issue has been agitated i.e. inclusion of the foreign exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeals of the Revenue deserve to be dismissed. They are accordingly dismissed. However, it is observed that in case on re-verification at the end of the AO it comes to the notice that the tax effect is more or Revenue s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeals of the Revenue are dismissed due to low tax effect. 10. In the result, appeal of the assessee as well as of the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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