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2014 (2) TMI 522 - HC - Income TaxDeduction u/s 80HHC of the Act Profits derived from business of export - Held that:- Unless the assessee is in a position to point out that the income earned is derived by the assessee from export of such goods and merchandise, such income would not qualify for deduction under Section 80HHC of the Act The decision in CIT Vs. K.Ravindranathan Nair [2007 (11) TMI 10 - Supreme Court of India] - every receipt is not an income and every income would not necessarily include element of export turnover - receipts constituting independent income having no nexus with exports are required to be reduced from business profit - every receipt cannot constitute sale proceeds from exports - every receipt is not income under the Income-tax Act and every income may not be attributable to the business of export - even though the assessee is an exporter, there was no necessary materials to point out as to whether the assessee's forward contracts were with reference to any particular contract or not or generally kept as an export house and not by way of speculative business the matter remitted back to the AO to find out whether forward contract were made in the course of its business of export and whether the profit earned from exchange fluctuation were with reference to any particular contract for export of goods. Claim of depreciation on temporary parking shed Held that:- The expenditure incurred was apart from the extent of expenditure thus incurred - whether the parking shed is a temporary one for parking vehicle or the shed itself is temporary one is not yet cleared - other temporary shed for keeping spares - ware-house and other expenditure incurred on storage facilities there was no justifiable ground to accept the plea of the assessee that the parking shed put up by the assessee should be treated as temporary one for the purpose of granting depreciation at 100% - order set aside and the depreciation on the expenditure incurred on putting up of temporary shed for parking vehicle would be at 10% only thus, the matter remitted back to the AO. Expenditure on dies & moulds Held that:- Replacement of the new dye in the place of old dye would qualify for current repairs under Section 31 of the Act - The decision in CIT Vs. Sri Mangayarkarasi Mills P.Ltd [2009 (7) TMI 17 - SUPREME COURT] followed - what is allowable as revenue expenditure under Section 37 of the Act are those expenditure other than one falling for consideration under Sections 30 to 36 of the Act - when the picture tube in a television set is replaced, such repairs would come within the connotation of the phrase "current repairs" thus, the claim being considered as current repairs, the same would fall under Section 31 of the Act as current repairs the order of the Tribunal modified. Deduction under Entry Tax Held that:- The Tribunal rightly considered the claim of the assessee for deduction of entry tax payment made by the assessee - The payment made on the entry tax demand and its adjustment against the Sales Tax assessment has nothing to do with deduction provision under the Income Tax Act on the entry tax paid - The provisions of Sales Tax Act and the Income Tax Act are on the different lines - The adjustment or the treatment given under the Sales Tax Act cannot be read in to the Income Tax Act and the only question is whether the entry tax actually paid by the assessee during the year under consideration is allowable as deduction or not - The Tribunal rightly allowed the deduction claimed by the assessee on account of tax payment made under Entry Tax Act - Decided partly in favour of Revenue.
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