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2010 (4) TMI 710 - ITAT, AHMEDABADAddition of income - During the course of assessment proceedings the AO had noticed that assessee had shown purchases of finished goods of Rs.1,96,19,168 - AO, not satisfied with the claim, rejected it and proposed an addition of Rs.49,04,782/- being 20% of the purchases of Rs.96,19,168 - In this regard, the AO has held that exemption under section 10B is not available on trading activities - Auditors have certified that assessee is entitled to exemption under section 10B on the items manufactured by it and exported - It is undisputed fact that it was ascorbic acid which was imported and put for processing and what was resulted was also ascorbic acid but of finer quality - In absence of any material to the effect that the use of ascorbic acid FCC grade IV and ascorbic acid IP are different and ascorbic acid FCC grade IV could not be used in place where ascorbic acid IP is used – Held that no manufacturing or production of any new article or thing has taken place from import of finished goods of ascorbic acid FCC grade IV - decided against the assessee Section 43B - The issue is now covered by the decision of Hon. Supreme Court in CIT vs. Alom Extrusion (2009 - TMI - 35073 - SUPREME COURT) according to which contributions to PF made before due date of filing the return are allowable as deduction - This ground of assessee is accordingly allowed Disallowance u/s 35D - Public issue expenses - AO to decided the issue in accordance with the decision taken in the preceding year.
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