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2012 (5) TMI 331 - AT - Income TaxAddition made under section 41(1) on account of value added tax refund receivable by AO – CIT deleted the addition – Held that:- VAT receivable by the assessee is not to be credited as income without waiting for the refund order by the VAT authority - it is not an automatic refund and is depending on the decision of the commercial tax authority who has to adjudicate the claim - it is not a benefit accrued to the assessee during the year as the claim was not adjudicated by the commercial tax authority - against revenue Dis-allow deduction (DEPB credit) in computing the total income by AO – CIT made credit deduction - Held that :- decided in the case of CIT v. Kalpataru Colours and Chemicals (2010 - TMI - 76895 - BOMBAY HIGH COURT) that DEPB credit is liable to be taxed in the year of issue of credit or in the year of sale of credit - In schedule 9 to the balance-sheet ended with March 31, 2007 the export benefit (DEPB) realisation is shown as Rs. 27,83,209.74 under the head "Other income". It is amply clear that the assessee has not sold DEPB credit during the relevant year. Therefore, the assessee is justified in excluding the same – against revenue.
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