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2009 (9) TMI 616 - AT - Income TaxAmount of DEPB/duty drawback credited to P&L a/c - assessees claimed exemption under s. 10BA of IT Act on the amount of increased profits by the amount received on account of DEPB/duty drawback credited to the P&L a/c, treating the same to be profits and gains derived by an industrial undertaking from the export out of India of eligible articles or things - AO denied exemption under s. 10BA of IT Act on the ground that the benefits constitute export incentives and that they did not represent profits derived from industrial undertaking of export - duty drawback, DEPB benefits, rebates etc. cannot be credited against the cost of manufacture of goods debited in the P&L a/c for purposes of ss. 80-IA/80-IB - amount of DEPB benefits/duty drawback receipts do not form profits and gains derived by an industrial undertaking from the export out of India of eligible articles or things and as such the same shall not be allowed to be deducted from the total income of the assessee for the purposes of s. 10BA of IT Act Excess of Insurance charges - CIT(A) treated the excess of receipt of insurance charges as profits and gains derived by an industrial undertaking from the export - charges as such are not on account of export of goods outside India but are the reimbursement of expenses incurred within India - same do not partake the receipt of sale of eligible articles or things as are described under s. 10BA and as such exemption under s. 10BA of IT Act cannot be granted in the light of ratio laid down by Hon'ble apex Court in Liberty India vs. CIT (2009 -TMI - 34471 - SUPREME COURT )- decision of CIT(A), set aside. Addition made for want of availability of quantitative details - no justification in the action of assessing authority in making addition as such without bringing any valid or independent material on record to suggest income not recorded in the books of account. Dis-allowance of Rs. 2,74,642 made on account of personal and other expenses - the expenses having been laid for the business purpose of the assessee, disallowance so deleted calls for no interference. Addition of Rs. 20,85,813 in terms of provisions of s. 2(22)(e) - Deemed dividend - In this case the authorities below did not examine the fact as to whether the appellant is a shareholder of the two companies namely, M/s V.J. Home Studio (P) Ltd. and M/s Via Jodhpur Art (P) Ltd. and as to how the judgment rendered in the case of Hotel Hilltop (2008 - TMI - 33813 - RAJASTHAN HIGH COURT) would be applicable. The applicability or non-applicability of provisions of s. 2(22)(e) of IT Act has also not been examined with reference to relevant provisions of law as such before holding that the AO is not justified in treating the amount as deemed dividend
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