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2017 (1) TMI 883 - AT - Income TaxEligiblity to claim the benefit of deduction u/s 80HHC on the amount of sales-tax refund received - Held that:- As stated that the assessee is a trader and not a manufacturer. Therefore, provisions of Explanation (baa) to section 80HHC are not applicable upon the assessee as were applied by the AO. Further, it is also noticed by us that sales-tax refund received by the assessee was nothing but reduction of cost of purchase. In substance, it does not make a difference in whatever manner the accounting has been done by the assessee. The sales-tax refund received by the assessee clearly goes to reduce the cost of purchases of the assessee. Under these circumstances, we find that the findings of Ld. CIT(A) are well reasoned and he has not erred in treating sales tax refund as eligible component for deduction under section 80HHC. See Topman Exports vs CIT (2012 (2) TMI 100 - SUPREME COURT OF INDIA). No contrary view was brought before us by the Ld. DR. Therefore, no justification to make interference in the well reasoned findings of the Ld. CIT(A). Therefore, his order is confirmed. - Decided in favour of assessee
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