×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
The above captioned appeal filed at the instance of revenue pertaining to Assessment Year 2014-15 is directed against the orders of Ld. Commissioner of Income Tax (Appeals)-II (in short ‘Ld.CIT(A)’], Indore dated 06.04.2018 which is arising out of the order u/s 143(3) of the Act dated 30.12.2017 framed by ACIT-4(1), Indore.
2. Brief facts of the case are that the assessee is a company engaged in the business of providing software development services. Return of income for the Assessment Year 2014-15 was filed on 21.11.2014 declaring income u/s 28 to 44D of the Act at Rs. 15,30,51,500/- and book profit u/s 115JB at Rs.76,65,48,837/-. Assessment was completed u/s 143(3) of the Act by Ld. A.O assessing total income u/s 28 to 44D at Rs.19 17,06,073/- and u/s 115JB at Rs.80,52,03,407/- making additions of gain from foreign currency at Rs.1,52,82,274/-, addition due to attribution of staff salary to SEZ units at Rs.2,07,68,143/- and disallowance u/s 40(a)(ia) at Rs.26,04,156/-. Aggrieved assessee preferred appeal before Ld. CIT(A) and succeeded.
3. Now aggrieved revenue is in appeal before the Tribunal raising following grounds of appeal;
On the facts and in the circumstances of the case the Ld. CIT(A):-
1.Whether on the facts and in circumstances of the case the Ld. CIT(A) has erred in summarily deleting the addition of gain from foreign currency made at Rs. 1,52,82,274/- holding, in a summary manner that the same is business income, without giving any factual finding regarding the details and nature of receipt of foreign income fluctuation.
2. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the proportionate addition of Rs. 2,07,68,143/- made on account of attribution of common salary of staff to the SEZ Units, without giving any factual finding, despite the fact that neither the assessee has disallowed such expenses in the return of income nor filed the details of such expenses disallowable, despite sufficient opportunities given by the AO
3. The Ld. CIT(A) did not provide any opportunity during the course of appellate proceedings to the AO to examine the new evidence produced before him by the assessee regarding attribution of salary, which was not produced before the AO during the course of assessment proceedings despite opportunities provided for the same.
4. The Ld. CIT(A) was not justified in holding that the disallowances of salary expenses attributable to SEZ units cannot be added to book profit for the purpose of tax liability u/s 115JB(f) provides for inclusion of the same to the Book Profit.
5. The appellant craves leave to add to '8r deduct from or otherwise amend the above grounds of appeal.
4. Through Ground No.1 revenue has challenged the finding of Ld. CIT(A) deleting the addition of treating gain from foreign exchange fluctuation as income from other sources at Rs.1,52,82,274/-. Brief facts relating to this issue are that during the course of assessment proceedings Ld. A.O observed that there was a net gain of foreign currency of Rs.1,52,82,274/- during the year from the two Special Economic Zone units foreign remittance. Ld. A.O treated the alleged