Saturday, August 27, 2011

If AO has allowed s. 10A deduction, DRP cannot withdraw it

 
GE India Technology Centre Pvt Ltd vs. DRP (Karnataka High Court)

If AO has allowed s. 10A deduction, DRP cannot withdraw it

The assessee claimed deduction of Rs. 32.18 crores u/s 10A. The AO passed a draft assessment order u/s 144C in which he allowed s. 10A deduction though he reduced the quantum by Rs. 44.49 lakhs. When the assessee filed objections before the Dispute Resolution Panel ("DRP"), it took the view that the assessee was not at all entitled to s. 10A deduction as it was engaged in "research & development". On the alternative plea that the assessee was engaged in providing "engineering design services", the DRP directed the AO to examine the claim on merits. The assessee filed a Writ Petition claiming that the directions given by the DRP was beyond jurisdiction. This was dismissed by the single judge. On appeal by the assessee

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