2014 (3) TMI 1120 - HC - Income Tax

Income from exchange gain eligible for deduction u/s.80HHC - Held that - Question is covered by the judgment in Commissioner of Income Tax-III vs. M/s. Priyanka Gems 2014 (3) TMI 938 - GUJARAT HIGH COURT - decided in favour of assessee Scrap income eligibility for deduction u/s.80IB/80HHC - held that - This question covered in the case of The Commissioner of Income-tax vs. Jikar A. Saiyed 2013 (12) TMI 1562 - GUJARAT HIGH COURT Excise duty and sales tax not be included in the total turnover while calculating the deduction u/s.80HHC - held that - Issue covered in favour of the assessee by virtue of the decision in the case of Commissioner of Income-tax vs. Pogagen AMP Nagarsheth Powertronics Ltd 2014 (3) TMI 934 - GUJARAT HIGH COURT Belated payment of provident fund and ESIC amounts - Held that - In so far as the employer s contribution to Provident fund and ESIC which were deposited late is concerned deduction would be available. The question is answered in favour of the assessee. However with respect to belated payments of provident fund and ESIC pertaining to the employee s contribution no deduction would be available and accordingly the question is answered against the assessee.

Summary

Issues:
1. Eligibility of income from exchange gain for deduction u/s.80HHC of the Act.
2. Eligibility of duty draw back/export incentives for deduction u/s.80IB/80HHC.
3. Exclusion of income earned from sale of scrap for deduction u/s.80HHC.
4. Eligibility of scrap income for deduction u/s.80IB/80HHC.
5. Treatment of excise duty and sales tax in total turnover calculation for deduction u/s.80HHC.
6. Disallowance of belated payments of PF & ESIC for deduction.

Analysis:
1. The judgment addressed the eligibility of income from exchange gain for deduction u/s.80HHC. The Court referred to a previous judgment and ruled in favor of the assessee based on the precedent.

2. The issue of duty draw back/export incentives for deduction u/s.80IB/80HHC was found to not arise from the Tribunal's judgment, hence not addressed in the current judgment.

3. The Court considered the exclusion of income from the sale of scrap for deduction u/s.80HHC. Citing a previous decision, the Court answered the question in accordance with the precedent.

4. The eligibility of scrap income for deduction u/s.80IB/80HHC was analyzed based on a previous decision, and the Court answered the question accordingly.

5. Regarding the treatment of excise duty and sales tax in total turnover calculation for deduction u/s.80HHC, the Court referred to a specific case and ruled in favor of the assessee.

6. The judgment discussed the disallowance of belated payments of PF & ESIC for deduction. It was divided into two parts: employer's contribution and employee's contribution. The Court referred to relevant judgments and ruled that deduction would be available for the employer's contribution but not for the employee's contribution, based on the specific circumstances and legal provisions.