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2020 (8) TMI 818 - AT - Income TaxExpenditure on replacement of Jigs and fixtures - Revenue or capital expenditure - current repairs - HELD THAT:- We find that the issue in dispute is squarely covered in favour of the assessee as decided in TVS MOTORS LIMITED [2019 (7) TMI 750 - MADRAS HIGH COURT] claim being considered as current repairs, the same would fall under Section 31 of the Act as current repairs. Also see SUNBEAM AUTO LTD. [2012 (6) TMI 59 - DELHI HIGH COURT] - Decided against revenue. Computing deduction u/s.80HHC - whether the ld. CIT(A) was justified in treating certain receipts as not forming part of the total turnover - HELD THAT:- Receipts from Dividends, Income from Units, Interests and Profit on sale of investments are merely income from other sources and not business income of the assessee and hence, cannot form part of profits and gains of business of the assessee. We also find that the aforesaid four receipts do not have any link in any manner whatsoever with the export activities of the assessee. We find that the deduction u/s.80HHC of the Act is given in respect of export sale proceeds that were brought into India in convertible foreign exchange and the profit derived attributable thereon alone would be eligible for deduction u/s.80HHC of the Act. We also find that the CBDT vide its Circular in Para 32.10 explaining the amendments to the Finance (No.2) Act, 1991 had categorically clarified that the receipts like interest, commission etc., do not have any element of turnover. Accordingly, the amendment was made to remove the said items from the profits of the business w.e.f. 01/04/1992 pertaining to A.Y.1992-93 onwards. Hence, the intention of the legislature is very clear and it is without any ambiguity and it could be safely concluded that the aforesaid four receipts do not form part of total turnover. We also find that the ld. CIT(A) had placed reliance on the decision of the Hon’ble Jurisdictional High Court to support its contention in the case of Kantilal Chhotalal [2000 (7) TMI 41 - BOMBAY HIGH COURT] - no infirmity in the order of the ld. CIT(A) granting relief to the assessee. - Decided against revenue.
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