9911796707
TMI Blog2018 (10) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... ng at inflated profit of eligible unit and deflated profit of non eligible units. Entire issue pertained to assessee's claim of deduction under section 10B of the Act. High Court had noted that this claim was examined by the Assessing Officer in the original assessment proceedings. Not be open for him to reexamine the claim, may be on another aspect or element of the claim being raised through reassessment proceedings. In the present case, yet another element of the claim being cited as a ground for reopening the assessment.We have noticed that during the original assessment, the Assessing Officer had raised multiple queries with respect to this claim.8. Thus the claim having been examined by the Assessing Officer during the assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer during the original assessment. Same cannot be made the subject matter of reexamination under reassessment proceedings. High Court allowed the petition by judgment dated 12.6.2017 holding that : 8. It can thus be seen that the Assessing Officer was acutely conscious of the assessee's claim of deduction under section 10B of the Act during the original assessment. To verify such claim, the Assessing officer had raised certain queries and asked the assessee to provide complete details with respect to such a claim. It was in response to these queries that the assessee supplied a detailed reply, as noted above. Along with the reply, assessee had annexed documents giving further details. It was after undertaking such exercise, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits were having much higher turnovers. in the audit report also, the assessee has not disclosed as to in what manner such general and administrative expenses have been bifurcated amongst various units. Because of which it is seen that much less general and administrative expenses have been apportioned to the 10B units so as to inflate the claim u/s 108 and thereby claiming losses in operations from Head Oflice. If we take proportionate amounts in all units, there will be considerable taxable income from Head Office rather than loss. Thus, taxable income has escaped assessment. Further, the assessee has claimed huge losses from sales unit, which by the name Itself would be an adjunct and cost centre of all the units and, therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in earlier judgment held that the assessee's claim of deduction under section 10B was examined in the original assessment and, therefore, reexamination would not be permissible. The same principle would apply in the present case also. 4) Counsel lastly contended that the reasons proceed on wrong footing. Contrary to what is suggested by the Assessing Officer in such reasons, in the audit report, breakup of claim of expenditures between the two units of assessee being one which is eligible for deduction under section 10B and other which is not eligible had been provided. 6. On the other hand, learned counsel Mrs. Mauna Bhatt opposed the petition contending that in the original assessment these questions were not at issue. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to that Assessing Officer had given the following reply : Furnish complete details with respect to the claim of exemption u/s. 10B. (Para 35 of notice): We have enclosed two Audit Reports in Form 56G in support of our claim u/s 10B for our Pune Unit and Kasez Unit (Anneure'P'). Please note that we have claimed the deduction u/s 10B as under : Unit name Consecutive year of claim Deduction Rs. Pune Unit 7th 10.66.05.096 Kasez Unit 4th 56.51.508 Similar claims of deductions have been allowed in all the earlier years. The details party wise for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputer software (as defined in section 10B) and Hardware. The sales Invoices are produced before Your Honour of both the periods in support of the above. We have also enclosed the Unit wise statement of Income (AnnexureP4) The unit wise Statement of Income shows the computation of Profits of the business each Unit separately. It will be found that MD salary etc has been allocated over all units in equal proportion. The unit wise Profits and Gains of business has been arrived after deducting the allocated MD salary. The unit wise Profits and Gains of Business arrived at has been considered for computing the deduction u/s 10B (4). The computation of deduction has to be made as per section 10B(4) i.e. Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
