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2012 (9) TMI 292 - ITAT MUMBAIReopening of the assessment u/s.147 - Held that:- From the perusal of the profit / losses the assessee had shown other income of Rs. 1,85,05,435/- but this schedule did not show any interest income. Further the assessee in the P & L A/c. had claimed deduction on account of net interest paid after netting the interest receipt which makes it clear that the interest income had not been shown separately in the P & L A/c. The interest income had been shown only in the Schedule M which gives the details of interest expenditure and here do full details of interest income has not been given. Thus only after making the some efforts, the interest income can be gathered from the accounts and, therefore, showing the interest receipt as part of the interest expenditure and not separately in the P & L A/c on the income side cannot be considered as true and full disclosure of facts relating to claim of deduction in respect of interest income - the assessee had failed to disclose truly and fully all the material facts necessary for the assessment in so far as the claim of deduction u/s.10A in respect of interest income is concerned, thus reopening of assessment is warranted - against assessee. Computation of deduction u/s.10A(4) - whether each units should be treated as independent unit or all the units should be taken as single unit for set-off - Held that:- As regards the set off of losses from some units against the profit of other units while computing the deduction u/s.10A is concerned, the assessee has maintained separate accounts in respect of each unit and profit and loss has been computed separately. The assessee has also filed the copies of separate P & L A/c. of each unit in the paper book and has also filed an auditors certificate in Form No.56F giving separate computation in respect of each unit. In our view, profit from each unit is eligible for deduction u/s.10A independently provided the profit could be computed separately, thus as there is no dispute that the assessee has maintained separate accounts in respect of each unit and profit has been computed separately. The losses from non eligible units cannot be set off against the profit of the undertaking eligible for deduction u/s.10A for the purpose of computation of deduction u/s.10A - in favour of assessee. Whether deduction u/s.10A is allowable in respect of other income - Held that:- As the profit directly arising from the export of articles or things or computer software will have to be considered as profit of business and not any other income which is incidental or attributable to such income while computing the profit derived u/s.10A(4). In the present case, the deduction has been claimed in respect of other income which includes dividend income, income from investment, profit from sale of assets, interest from ICD, bank deposits, interest on advance for business or to employees and other receipts, therefore, the interest income will not be eligible for deduction u/s.10A - against assessee.
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