Case Law Details
Brief of the Case
ITAT Mumbai held In the case of DCIT vs. M/s. Tata Consultancy Services that section 80HHC does not place any restriction to shift the claim of deduction or exemption under any other provision in respect of profits for which no deduction has been claimed and allowed in the previous year. Since both the sections, i.e., section 80HHE and section 10A entitle the benefit; the assessee would legitimately be entitled to the benefit of that. We, therefore, do not find any justification in the action of the CIT (A) to hold that the assessee being an old unit having once claimed deduction u/s 80HHE was not entitled to claim deduction u/s 10A from the profits of its units. Further, there is no attempt by the assessee to extend the period of the tax holiday by exercising option to claim deduction u/s 10A instead of u/s 80HHE
Facts of the Case
Overseas Taxes
The assessee has paid the Federal taxes amounting Rs. 19,99,80,754/- in the USA, Canada and other Overseas branches and State taxes amounting Rs. 16,28,38,423/- in the USA and Canada, which were claimed as deduction in the return of income. The AO disallowed these deductions holding that such taxes are covered by the provisions of section 40(a) (ii).
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