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ITAT held that assessee was entitled to claim u/s 10AA (of Income Tax Act, 1961) as u/s 51 (of Income Tax Act, 1961) of SEZ Act
ITAT held that assessee was entitled to claim u/s 10AA (of Income Tax Act, 1961) as u/s 51 (of Income Tax Act…
CIT set aside assessment u/s 263 (of Income Tax Act, 1961) on the ground that Diamonds ‘R’ Us had large scale operation of Rs.53.59 crores with meager expenses of Rs.8,20,202. Assessee challenged CIT’s order. In set aside proceedings AO passed order u/s 143(3) (of Income Tax Act, 1961). CIT(A) allowed assessee’s appeal. ITAT, folllowing the case of Goenka Diamond & Jewellers Ltd, and held that assessee was entitled to claim u/s 10AA (of Income Tax Act, 1961) as u/s 51 (of Income Tax Act, 1961) of SEZ Act, SEZ Act overrides s 10AA.-500632
1. Diamonds ‘R’ Us challenged the CIT’s order u/s 263 (of Income Tax Act, 1961) as bad in law and without jurisdiction.
2. In the set aside proceedings the AO has passed order under section 143(3) (of Income Tax Act, 1961) r.w.s. 263 (of Income Tax Rules, 1962).
3. Against the order of the AO appeal was filed before the concerned CIT(A) who has allowed the appeal in favour of the assessee.
4. A similar issue came up in A.Y. 2006-07 in assessee's own case wherein following the decision of the ITAT in the case of Goenka Diamond & Jewellers Ltd. The issue had been decided in favour of the assessee
The ITAT held as under:
5. The fact being similar, following the same reasons we uphold the order of the CIT(A) who has allowed the claim of assessee of deduction under section 10AA (of Income Tax Act, 1961).
6. As a result Revenue's appeal is dismissed.
7. In view of this the issue raised by assessee against the order of CIT under section 263 (of Income Tax Act, 1961) goes academic. Same is dismissed as being infructuous.
Case Reference - M/s. Diamonds 'R' US Vs CIT.
IN THE INCOME TAX APPELLATE TRIBUNAL "D" BENCH, MUMBAI
BEFORE SHRI SHAILENDRA KUMAR YADAV, JM
AND SHRI RAJESH KUMAR, AM
ITA No. 2793/Mum/2012
(Assessment Year: 2007-08)
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