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2013 (4) TMI 573 - AT - Income TaxReopening of assessment - Credit appearing in the capital account brought to tax under 'other sources' - Held that:- Assessee could not substantiate her claim with any material that the cash credit found in the capital account represent business transactions that too relating to exports. D.R further contention that the claim of the assessee that the said cash credit represents export profits, the same cannot be allowed as deduction during the year under consideration as it is a profit of an earlier year merits here. Further the assessee has to satisfy various conditions prescribed under sec. 80HHC in order to avail deduction under that section. The assessee, without demonstrating compliance of all the conditions, simply seeks deduction u/s 80HHC. Under these circumstances, no infirmity in the decision of the CIT(A) in confirming the action of the AO in assessing the same under the head 'income from other sources'. Addition relating to shortage of stock - assessee is only disputing the value to be adopted for 6141 bags placing reliance on the claim of "High seas sales" made to her sister concern and accordingly claims that the sales value declared in the documents relating to high seas sales viz., Rs.1,62,11,217/- should be considered as the income - Held that:- CIT(A) did not accept the theory of high sea sales and accordingly determined the value of 6141 bags, on the basis of average sales rate, at Rs.1,85,60,113/- finds merit as the transaction of alleged high seas sales have been entered with the sister concern of the assessee, the alleged transactions of high seas sales/purchases have not been recorded in the books of the assessee as well as in the books of the sister concern, the high seas sales invoice as well as high seas sales agreement are self- generated documents within the control of the assessee and hence lacks credence. No external documents were brought on record in support of claim - uphold the order of CIT(A) on this issue. Disallowance of claim of payments relating to group gratuity scheme - Held that:- It is well settled proposition of law that the re-opening of the assessment u/s. 148 is only for the benefit of the Revenue as held by in CIT vs. Sun Engineering Works P. Lt., [1992 (9) TMI 1 - SUPREME Court]. Admittedly, the assessee did not claim the payment made to group gratuity scheme during the course of original assessment proceedings. Hence assessee cannot claim the same in the reassessment proceedings Denial of deduction u/s. 80HHC - Held that:- Considering the cases of A.C.G. Associated Capsules Pvt. Ltd. [2012 (2) TMI 101 - SUPREME COURT OF INDIA] & Topman Exports Vs. CIT [2012 (2) TMI 100 - SUPREME COURT OF INDIA] wherein held held that 90% of not the gross rent or gross interest but only net interest or net rent which has been included in the profits of the business of the assessee as computed under the head profits and gains of business is to be deducted under clause (1) of Explanation (baa) to sec. 80HHC of the Act for determining the "profits of the business" requires fresh examination at the end of the assessing officer in the light of various decisions cited supra. Denial of deduction u/s. 80IB - Held that:- The assessee failed to show that she is eligible for deduction under sec. 80IB of the Act, even after exclusion of incidental incomes, which are not related to the manufacturing activity. Accordingly, confirm the order of the CIT(A) on this issue.
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