Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 262 - AT - Income TaxExemption u/s 10BA - manufacturing and exporting of handicraft-wooden-items - A.O. has observed that the duty draw back amounting to ₹ 38,37,416/-, which is a part of P & L Account, if excluded then sales of the year will be reduced to ₹ 9,18,05,232/- which will reduce the g.p. rate of 0.01% - AO rejected the books of accounts and disallowed the deduction u/s 10BA - Held that:- Ratio of the decision of Hon'ble Apex Court rendered in the case of Liberty India vs. CIT [2009 (8) TMI 63 - SUPREME COURT] is not applicable to the facts of this case. The Section under interpretation before Hon'ble Summit Court was 80IA - In Sec 80IA, no formula for computation of profits derived by the undertaking is laid down, whereas in Section 10BA and Section 80HHC formula is prescribed for the purpose. Therefore, in our considered opinion, section 10BA and 80HHC are more nearer to each other, and whatever interpretation of 'derived from' is given in any decision in which Section 80HHC is involved, would also mutatismutandis to the interpretation of Section 10BA. The Mumbai Bench of Hon'ble Income Tax Appellate Tribunal in the case Arts and Crafts Exports [2010 (6) TMI 645 - ITAT MUMBAI], after considering the decision of Liberty India (2009 (8) TMI 63 - SUPREME COURT) has taken a clear cut decision in favour of the assessee. This decision has been approved by Hon'ble Bombay High Court [2011 (12) TMI 338 - Bombay High Court] and the decision in the case of M/s. Maral Overseas Limited Vs ACIT [2012 (4) TMI 345 - ITAT INDORE] All the assessees before us are eligible for deduction u/s 10BA of the Act.
|