M/S. TATA ELXSI LIMITED., ,BANGALORE vs. DEPUTY COMMISSIONER INCOME TAX, CIRCLE-7(1)(1), BANGALORE

ITA 927/BANG/2023Status: DisposedITAT Bangalore08 January 2024AY 2016-17Bench: SHRI GEORGE GEORGE K. (Vice President), SHRI CHANDRA POOJARI (Accountant Member)39 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, following a coordinate bench decision and Supreme Court pronouncements, held that the deduction under Section 10AA should be calculated with reference to 'gross profits and gains' and not 'income' after allocation of common expenses. The matter was remitted to the AO for fresh assessment.

What were the facts?

The assessee, an IT company, claimed deduction under Section 10AA for its SEZ units without allocating common corporate expenses. The Assessing Officer allocated these expenses based on turnover, reducing the deduction, a view confirmed by the NFAC.

What were the issues?

Whether common corporate expenses should be allocated to SEZ units for calculating Section 10AA deduction, and if so, on what basis. The interpretation of 'profits and gains' for the purpose of Section 10AA deduction.

Which sections of the Income-tax Act were involved?

Section 10AA

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(28)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE

Before: SHRI GEORGE GEORGE K. & SHRI CHANDRA POOJARI

For Appellant: Shri Padam Chand Kincha, A.R
For Respondent: Shri D.K. Mishra, D.R
Hearing: 08.01.2024Pronounced: 08.01.2024

PER BENCH: These appeals by assessee are directed against different orders of NFAC for the assessment years 2016-17, 2017-18 & 2020-21. The common ground in all these appeals is with regard to allocation of common Corporate expenditure between undertaking entitled for exemption u/s 10AA & Non- 10AA of the Income Tax Act, 1961 (in short “The Act”) resulting in reduction of deduction u/s 10AA of the Act at Rs.95,84,407/-, Rs.1,09,08,930/- & Rs.12,69,96,527/- for the assessment years 2016-17, 2017-18 & 2020-21 respectively.

2.

The assessee is an Information Technology company, has operations from

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 10AA

All 857 judgments and leading authorities on Section 10AA →

Recent GST High Court judgments

Search GST case law →