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2015 (2) TMI 1325 - ITAT CHANDIGARHDeduction u/s 10B - CIT (A) in having treated the miscellaneous receipts by way of freight discount allowed by Shipping Companies and the exchange fluctuation difference as part of business receipts - HELD THAT:- Brokerage which is basically rebate allowed by the Shipping company as well as sale of sample is directly related to the business of the assessee and since the same has already been held to be part of the business income by the Tribunal, therefore, following the same we hold that these receipts are part of the business income and eligible for deduction u/s 10B. As far as the issue regarding processing charges is concerned, the Hon' ble Punjab & Haryana High Court in the case of CIT v Vallabh Yarns P. Ltd [2010 (9) TMI 836 - PUNJAB AND HARYANA HIGH COURT] following the earlier decision in the case of CIT vs Impel Forge and Allied Industries Ltd [2008 (12) TMI 370 - PUNJAB & HARYANA HIGH COURT] held that the assessee is entitled to deduction u/s 801B from the job work done for others. Therefore, following this ratio, even this issue is covered in favour of the assessee. We are of the opinion that assessee is entitled to deduction u/s 10B on all the items referred to in appeal. Therefore, we set aside the order of Ld. CIT (A) and direct the Assessing Officer allow deduction u/s 10B Reducing the profits of undertaking for calculating deduction u/s 10 B which had already been reduced by the assessee - HELD THAT:- We find force in the submissions of Ld. Counsel for the assessee because sub section (4) mandates proportionate deduction on profits depending upon the quantity of export. However, the Assessing Officer has not discussed this issue in detail how much export was carried out by the assessee and whether any domestic sales were also there. Further, this issue has not been adjudicated by CIT (A) and the same required verification of facts. Therefore, in the interest of justice, we remand this issue to the file of Assessing Officer to determine the facts regarding how deduction u/s 10B was claimed and whether some exports were there and some domestic sales were also there and then decide the issue in accordance with law. Interest received from customers on delayed payments - 'business income' OR 'income from other sources' - HELD THAT:- Interest received from delayed payments on account of sale to customers of manufactured goods is directly related to the industrial undertaking and was to be considered as part of the profit for computing deduction. The Ld. CIT (A) has decided this issue in favour of the assessee by following this decision in PHATELA COTGIN INDUSTRIES P. LTD. VERSUS COMMISSIONER OF INCOME-TAX [2007 (5) TMI 226 - PUNJAB AND HARYANA HIGH COURT] . Therefore, we find nothing wrong with the order of Ld. CIT (A) and we confirm the same. Treat the gain on forex fluctuation to be the income eligible for deduction u/s 10B - HELD THAT:- If amounts are kept in the EEFC account and some interest and fluctuation on such EEFC account is received, then the same is not eligible for deduction. However, we again clarify that if gain on account of foreign exchange fluctuation is on account of normal sale proceeds, then such gain would be eligible for deduction. Since these facts have not been examined by the Assessing Officer or CIT (A), therefore, we set aside the order of Ld. CIT (A) and direct the Assessing Officer to examine these facts and then decide this issue in accordance with law.
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