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2013 (1) TMI 37 - AT - Income TaxDeduction u/s 10A – Export proceeds not received within six month – Draft misplace by bank - Assessee was engaged in the business of manufacturing and export of processed food products – Assessee contended that foreign remittances had been sent by the foreign buyer to the banker who misplaced the same and, therefore, since remittances were received in India, claim of deduction should be allowed – Held that:- Unless the foreign remittances are credited in the account of assessee or at least credited in the account of the bank, it cannot be said that the export proceeds have been received in or brought into India. It is not clear whether these remittances have been included in the total turnover in the P&L account. We, therefore, direct the AO to re-compute deduction under section 10A by including the said remittances in the total turnover and by excluding the same from export turnover and excess claim if any will be disallowed. The profit of business will be computed excluding the remittances in the total turnover. In favour of revenue Disallowance of depreciation on plant and machinery - Treatment of subsidy received from the Government in the computation of depreciation on p&m – Held that:- There is nothing on record to show that subsidy had been granted by the govt. towards any specific asset or p&m. Therefore, merely because amount received had been utilized for acquisition of p&m, it cannot be said that subsidy was to meet cost of any asset. It is a settled legal position that only subsidy granted specifically towards a particular asset has to be reduced from cost of that asset while computing depreciation. There is no material to show that the subsidy in this case had been granted to meet cost of p&m the disallowance of depreciation corresponding to subsidy cannot be upheld. In favour of assessee
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