9911796707
TMI Blog2023 (4) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 36(1)(va) - HELD THAT:- It is settled position of law that the inflated business profits on account of any disallowances also qualifies for deduction u/s 10AA in view of the decision of Gem Plus Jewellery India Ltd [ 2010 (6) TMI 65 - BOMBAY HIGH COURT] and subsequently followed in the case of PCIT vs. Lionbridge Technologies (P.) Ltd [ 2017 (9) TMI 1410 - BOMBAY HIGH COURT] affirmed by the Hon ble Supreme Court in the case of PCIT vs. Lionbridge Technologies (P.) Ltd [ 2018 (8) TMI 151 - SC ORDER] However, the material on record does not indicate that the disallowance of PF and ESI was made in relation to business profits of unit, whose profits are eligible for deduction u/s 10AA of the Act. Therefore, this matter is remitted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion maintained by it in terms of section 92D of the Act read with Rule 10D of the Income-tax Rules, 1962 ( the Rules ) as well as conducting fresh search; 1.2 rejecting comparability analysis in the TP documentation and conducting a fresh comparability analysis based on application of the additional/ revised filters in determining the ALP; 1.3 jurisdictional error made by the Ld. AO in making a reference to the Ld. AO to the Assistant Commissioner of Income Tax, Transfer Pricing Officer-1(1); 1.4 not providing the search strategy and reasons for acceptance or rejection for the fresh economic analysis conducted by Ld. TPO which tantamount to choosing ad hoc companies as comparable; 1.5 while performing the comparability analysis, erroneously ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossly erred in not allowing additional deduction under section 10AA of the Act due to consequential increase in the profits eligible for deduction under section 10AA on account of alleged disallowance under section 36(1)(va) of the Act 4 That on the facts, in circumstances of the case and in law, Ld. AO has erred in computing excessive assessed income and consequential tax liability in the computation of income annexed to the final assessment order. 5 That on the facts, in circumstances of the case and in law, Ld. AO erred in not granting complete credit of Tax Deducted at Source (TDS) amounting to INR 17,85,96,051 as claimed by the Appellant in the return of income filed for the year under consideration and restricting the same to INR 13,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,940/- and making disallowance u/s 36(1)(va) in respect of belated payment of employees contribution of PF and ESI of Rs. 8,61,45,863/- vide intimation u/s 143(1) of the Act. 5. On receipt of the draft assessment order, objections were filed before the Hon ble DRP contesting the TP adjustments as well as disallowance on account belated payment of employees contribution of PF and ESI. The Hon ble DRP vide order dated 28.04.2022 while giving part relief reduced the addition made on account of TP adjustments to Rs. 108,31,85,753/-. However, confirmed the addition on account of belated payment of employees contribution of PF and ESI of Rs. 8,61,45,863/-. 6. On receipt of the direction of the Hon ble DRP, the Assessing Officer passed a final as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l filed against the order u/s 143(3) r.w.s. 144C(13) of the Act. Thus, this ground of appeal no. 2 stands dismissed. 10. Ground of appeal no. 3 challenges the direction of the Hon ble DRP disallowing the deduction u/s 10AA in respect of disallowance made u/s 36(1)(va) of the Act. It is settled position of law that the inflated business profits on account of any disallowances also qualifies for deduction u/s 10AA in view of the decision of the Hon ble Bombay High Court in the case of CIT vs. Gem Plus Jewellery India Ltd., 330 ITR 175 (Bom.) and subsequently followed by the Hon ble Bombay High Court in the case of PCIT vs. Lionbridge Technologies (P.) Ltd., 86 taxmann.com 101 (Bom.), affirmed by the Hon ble Supreme Court in the case of PCIT v ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
