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2015 (7) TMI 1334 - ITAT CHANDIGARHDeduction u/s 80IC - reducing the profit eligible for deduction for Duty Draw Back and Misc. Receipts - HELD THAT:- We are of the view that no interference is called for in the matter. Under Section 80IC, deduction is allowable to the assessee where the gross total income of the assessee includes any profits and gains derived by an undertaking or an enterprise from any eligible business referred to in the said Section. The Duty Draw Back is paid by the government under various incentive schemes and thus, are not derived from eligible business. Hon'ble Supreme Court in the case of Liberty India Vs CIT [2009 (8) TMI 63 - SUPREME COURT] held that, “The connotation of the words “derived from” is narrower as compared to that of the words “attributable to”. By using the expression “derived from” Parliament intended to cover sources not beyond the first degree.” The issue is, therefore, covered against the assessee by judgement of Hon'ble Supreme Court in the case of Liberty India (supra). This ground of appeal of the assessee is accordingly, dismissed. Brokerage on account of ocean freight is business income as was already held by the Tribunal in the case of the same assessee vide order dated 10.02.2015. Therefore, assessee would be entitled for deduction under section 80IC of the Act on said amount. The orders of authorities below are accordingly, set aside and Assessing Officer is directed to grant deduction under section 80IC to the assessee. Reducing the profits eligible for deduction u/s 80IC being 70% of excess provisions written back - HELD THAT:- CIT(Appeals) noted that Assessing Officer has not held that the provisions written back are not eligible for deduction under section 80IC of the Act because Assessing Officer has merely disallowed 70% claim of the assessee. The submissions of the assessee show that when provision was created in the previous year, it would result net profit of the assessee reduced in preceding assessment year 2006-07. Therefore, assessee would have also got lesser deduction under section 80IB of the Act, as such, the income of the assessee was reduced in preceding assessment year. Therefore, assessee correctly claimed that when provision was taken care in the year under appeal, it would enhance the income of the assessee. Since the income earned by the assessee was not disputed by the Assessing Officer and Assessing Officer allowed part claim of the assessee to the extent of 30%, would clearly show that assessee was entitled for deduction under section 80IC of the Act on the entire amount of provisions written back in the year under consideration. We, therefore, set aside the orders of authorities below and direct the Assessing Officer to allow claim of assessee under section 80IC of the Act on the entire claim made by the assessee. Not calculating minimum alternate tax to be carried forward to subsequent year in the correct manner - admission of additional ground of appeal - HELD THAT:- Since this issue is not arising out of the order of ld. CIT(Appeals) and assessee has not shown any justification for admission of the additional ground of appeal, therefore, the oral request of ld. counsel for the assessee cannot be accepted at this stage. In the absence of any request in writing for admission of the additional ground of appeal, ld. DR was justified in contending that department would be seriously prejudiced in their contention because no opportunity had been given to the revenue to counter the request of the assessee. This issue is also not arising from the order of the ld. CIT(Appeals) and that no reason or justification had been explained why such request should be admitted. Therefore, considering the totality of the facts and circumstances of the case, we do not find any justification to accept the oral request by ld. counsel for the assessee in admitting additional ground of appeal so raised in ground No. 4 of the appeal of the assessee.
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