ITAT Mumbai Judgments — September 2022

The Tribunal allowed the assessees to withdraw their appeals. The reason for withdrawal was a subsequent clarification by the CBDT regarding conditions in Form 10AC, making the original conditions in the registration order unwarranted.

The Tribunal held that the franchise fee was earned in the course of business and thus eligible for set off against business losses. The rate of taxation for the income is irrelevant for its eligibility for set off.

The Tribunal held that the rectification was justified as it corrected a clerical error. It also noted that a co-ordinate bench had previously dismissed the Revenue's appeal on identical grounds for an earlier assessment year.