Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 814 - AT - Income TaxDeduction u/s 80 IB - whether conversion charges, testing charges and interest income would be eligible for deduction? Held that:- Assessee has two activities, the first is where it purchases raw material and converts the same into finished products and secondly where raw material is supplied by the customer and the same is used for manufacturing of finished products and then given to the customer on payment of conversion charges. As far as conversion charges is concerned, there is no dispute that the assessee is entitled for claim of deduction under Section 80 IB as that the appellant had done a process on the raw material which was nothing but a part and parcel of the manufacturing process of the industrial undertaking & gains derived from industrial undertakings and so entitled for the purpose of computing deduction under Section 80IB as decided in CIT – III Versus Sadhu Forging Ltd. [2011 (6) TMI 9 - DELHI HIGH COURT] - FAA was right in holding that the assessee is entitled to deduction of conversion and testing charges earned by the assessee for doing job work on the facts and circumstances of the case - against revenue. Interest received from customers for delayed payments - exclusion of only net interest income - Held that :- As decided in Nirma Industries Limited Versus Deputy Commissioner of Income-Tax [2006 (2) TMI 92 - GUJARAT HIGH COURT] while computing deduction under section 80-I interest received from trade debtors towards late payment of sales consideration is required to be excluded from the profits of the industrial undertaking as the same cannot be stated to have been derived from the business of the industrial undertaking - directed to tribunal to examine the factual matrix of the present case including the balance sheet and accounts of the assessee, to decide the question - in favour of assessee for statistical purposes.
|