IT: Commissioner (Appeals) has to give convincing reasoning while upholding order of Assessing Officer
IT: Where assessee did not continue as small scale industrial undertaking during assessment year under consideration, it was not entitled to claim deduction under section 80-IB
IT: Where depreciation and loss prior to initial year had already been set off against other business income of respective years, there was no need for notionally carrying forward and setting off of same depreciation and loss in computing deduction under section 80-I
IT: Benefit of weighted deduction on in-house Research and Development expenditure is allowed only from year in which assessee has made application and entered into an agreement with Department of Science and Industrial Research
■■■
[2014] 51 taxmann.com 245 (Pune - Trib.)
IN THE ITAT PUNE BENCH 'A'
Advik Hi tech (P.) Ltd.
v.
Additional Commissioner of Income-tax, Range-8, Pune*
SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER
AND R.K. PANDA, ACCOUNTANT MEMBER
IT APPEAL NOS. 1743 & 1744, 1706 & 2041 (PN.) OF 2012
[ASSESSMENT YEARS 2008-09 & 2009-10]
JULY 30, 2014
I. Section 28(i), read with section 45 of the Income-tax Act, 1961 - Business income - Chargeable as (Business income v. Capital gains - Share transactions) - Assessment year 2008-09 - Assessee Company engaged in manufacturing of auto components earned a profit from purchase and sale of shares and showed same as short-term capital gain - Assessing Officer treated same as business income and Commissioner (Appeals) confirmed same - Whether in view of assessee's own case for assessment year 2007-08 wherein identical issue was pending disposal, matter was to be restored to file of Commissioner (Appeals) for fresh adjudication - Held, yes [Para 2.3] [Matter remanded]
II. Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings other than infrastructure development undertakings (Small scale industrial undertaking) - Assessment year 2008-09 - Whether in order to claim deduction under section 80-IB(3)(ii), eligibility of being SSI unit continues for entire period of claim and not only in initial assessment year - Held, yes - Whether, therefore, Commissioner (Appeals) was justified in rejecting assessee's claim for deduction under section 80-IB where assessee did not qualify to be a small scale industrial undertaking in previous year relevant to year under consideration as value of its plant and machinery exceeded Rs. 3 crores - Held, yes [Para 5.2] [In favour of revenue]
IT: Where assessee did not continue as small scale industrial undertaking during assessment year under consideration, it was not entitled to claim deduction under section 80-IB
IT: Where depreciation and loss prior to initial year had already been set off against other business income of respective years, there was no need for notionally carrying forward and setting off of same depreciation and loss in computing deduction under section 80-I
IT: Benefit of weighted deduction on in-house Research and Development expenditure is allowed only from year in which assessee has made application and entered into an agreement with Department of Science and Industrial Research
■■■
[2014] 51 taxmann.com 245 (Pune - Trib.)
IN THE ITAT PUNE BENCH 'A'
Advik Hi tech (P.) Ltd.
v.
Additional Commissioner of Income-tax, Range-8, Pune*
SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER
AND R.K. PANDA, ACCOUNTANT MEMBER
IT APPEAL NOS. 1743 & 1744, 1706 & 2041 (PN.) OF 2012
[ASSESSMENT YEARS 2008-09 & 2009-10]
JULY 30, 2014
I. Section 28(i), read with section 45 of the Income-tax Act, 1961 - Business income - Chargeable as (Business income v. Capital gains - Share transactions) - Assessment year 2008-09 - Assessee Company engaged in manufacturing of auto components earned a profit from purchase and sale of shares and showed same as short-term capital gain - Assessing Officer treated same as business income and Commissioner (Appeals) confirmed same - Whether in view of assessee's own case for assessment year 2007-08 wherein identical issue was pending disposal, matter was to be restored to file of Commissioner (Appeals) for fresh adjudication - Held, yes [Para 2.3] [Matter remanded]
II. Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings other than infrastructure development undertakings (Small scale industrial undertaking) - Assessment year 2008-09 - Whether in order to claim deduction under section 80-IB(3)(ii), eligibility of being SSI unit continues for entire period of claim and not only in initial assessment year - Held, yes - Whether, therefore, Commissioner (Appeals) was justified in rejecting assessee's claim for deduction under section 80-IB where assessee did not qualify to be a small scale industrial undertaking in previous year relevant to year under consideration as value of its plant and machinery exceeded Rs. 3 crores - Held, yes [Para 5.2] [In favour of revenue]