9911796707
TMI Blog2022 (4) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... sked to do so. Since this issue is coming up for the first time before the Tribunal and the assessee has not given full details before the lower authorities, therefore, we deem it proper to restore the issue to the file of the AO with a direction to grant one more opportunity to the assessee to furnish full details regarding the nature of Job Work and explain as to how the assessee is entitled to deduction u/s. 80IC on such Job Work. Needles to say that AO shall decide the issue as per fact and law after giving the opportunity of being heard to the assessee. The issue regarding deduction u/s. 80IC on Job work is accordingly allowed for statistical purpose. - ITA No.2979/Del/2017 - - - Dated:- 31-3-2022 - Sh. R. K Panda, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges are to be considered out of the purview of deduction u/s 80IC of the IT Act, 1961 and has to be considered as income arising out ancillary activity of the assessee which is independent source of income beyond the first degree of nexus between profit and eligible business of industrial undertaking within the meaning of section 80IC(2) of the IT Act. Therefore, deduction u/s 80IC of the IT Act is not allowable on this income. 4. However, he noted that some expenses are incurred in connection with earning income from AMC and repair charges and Job work. He asked the assessee to furnish the details of expenses incurred in connection with AMC and repair charges and Job Work. In absence of any details furnished by the assessee the AO exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... added on which no expenses is allowed. The total of such income comes to ₹ 1,31,95,362/-. This is found to be the net income from above activities. As discussed above, deduction u/s 80IC is not allowable on this. Accordingly, this amount of ₹ 1,31,95,362/- is being added to the total income of the assessee. (Penalty proceedings u/s 271(l)(c) are being initiated separately for furnishing inaccurate particulars of income thereby concealing his income.) (Addition 1,31,95,362/-) 5. In appeal the Ld. CIT(A) upheld the action of the AO in denying the deduction u/s. 80IC in respect of AMC and repair charges, Job work, duty draw back interest and miscellaneous income. 6. Aggrieved with such order of the CIT(A), the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to deduction under Section 80 IC of the Act on AMC charges, duty draw back, interest on FDRs, other interest and interest on refund. 8. The Id. Counsel for the assessee fairly submitted that the Tribunal while disposing of the appeal for assessment years 2006- 07 and 2007-08 in ITA. Nos. 1563 and 4376/Del/2011 dated 26.05.2017 held that assessee is entitled for deduction under Section 80 IC of the Act on the AMC charges. The Id. Counsel for the assessee further submits that for the assessment year 2012-13 the assessee claimed deduction only at 30%, but the Id. Assessing Officer disallowed 100% of the AMC charges, duty draw back, interest on FDR, other interest etc. Therefore, he submits that, if at all, any disallowance to be ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a fact that the assessee has not given the details before the AO, despite being asked to do so. Since this issue is coming up for the first time before the Tribunal and the assessee has not given full details before the lower authorities, therefore, we deem it proper to restore the issue to the file of the AO with a direction to grant one more opportunity to the assessee to furnish full details regarding the nature of Job Work and explain as to how the assessee is entitled to deduction u/s. 80IC on such Job Work. Needles to say that AO shall decide the issue as per fact and law after giving the opportunity of being heard to the assesee. The issue regarding deduction u/s. 80IC on Job work is accordingly allowed for statistical purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
