Tribunal held that disallowance made under section 40(a)(ia) would not affect assessee’s liability to tax because even if said amount was disallowed and added to income, same would be exempted under section 10A. High Court upheld Tribunal’s order. (Followed CIT v Gem Plus Jewellery India Ltd ( 2011) 330 ITR 175 (Bom)(HC) (AY. 2006-07) (Supreme Court followed CIT v. HCL Technologies Ltd 2018 (6) SCALE 524)
PCIT v. BMC Software India (P.) Ltd. (2019) 109 taxmann.com 277 / 266 Taxman 179 (Bom.)(HC) Editorial : SLP of revenue is dismissed, PCIT v. BMC Software India (P.) Ltd. (2019) 266 Taxman 178 (SC)
S. 10A : Free trade zone-Disallowance of expenses-Enhanced profit due to statutory disallowances–Entitle to deduction. [S.40(a)(ia)]