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2012 (7) TMI 57 - ITAT, MUMBAIExtended period of exemption / deduction u/s 10A / 10B - held that:- had the period of five years not yet expired, the assessee would have been entitled for a larger period of ten years which is exactly the case of the assessee before us. Ad-hoc disallowance of manufacturing expenditure - manufacturing expenditures have increased by more than 100% in this year as compared to the previous year - increase of production is hardly 25% and reduction of salary is marginal - appellant has contended that increase in expense was largely attributable to increase in production for exports Held that:- Appellant has failed to discharge its onus to justify such huge expenditure paid to its related sister concerns covered u/s. 40A(2)(a)/410A()(b) of the I.T. Act - assessee has not produced details and evidence to support the claim of such huge expenditure incurred - Necessary evidences were not furnished disallowance of 20% reduced to 10% - ad-hoc disallowance sustained - assessee's appeal is partly allowed Foreign exchange gains - whole of the gain is attributable to export sale realization of the current year - Held that:- receipt by way of exchange rate fluctuation is includible in the total turnover of the assessee Employees' and employer's contribution to P.F. and ESIC were made within the grace period Held that:- payments were made after the due date but within the grace period allowed under P.F./ESIC Acts - CIT(A) erred in fact and in law in confirming disallowance of Employers contribution to PF and ESIC made before filing Return of Income u/s. 139(1) - Assessing Officer be directed to allow Employers contribution to PF and ESIC made before filing Return of Income u/s. 139(1). Whether the assessee is entitled to relief under section 10B on such interest income Held that:- Assessing Officer directed to recompute the income accordingly - assessee is not eligible for deduction on this interest income under section 80HHC in view of clause (baa) to explanation to section 80HHC Whether the assessee is entitled to deduction under section 80HHC - no relief has been claimed under section 10B, and to the extent the aggregate does not exceed the gross total income Held that:- Exemption under section 10A of the Act is limited to 90% of the profits of the undertaking and the balance 10% of the profits on non-refundable as part of gross total income of the assessee is to be subjected to the deduction provided under Chapter VI-A of the Act before computing the total income of previous year relevant to the assessment year in the hands of the assessee - Assessing Officer directed to allow the claim of the assessee in respect of the deduction claimed under section 80HHC of the Act on the balance profits in proportion to total turnover and recompute the income of the assessee in accordance with the provisions of the Act
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