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2014 (1) TMI 73 - AT - Income TaxDeletion of Disallowance on account of excess claim of Deduction u/s 10B of the Act – Held that:- Both section 80HHC & 10B deal with computation of deduction of total income on account of export profits - The manner of computation of export profit for the purpose of section 10B is given in section 10B(4) for the exports of 100% export oriented units while it is given in section 80HHC(3)(a) for exports by others – Following C.I.T. vs. Lakshmi Machine works [2007 (4) TMI 202 - SUPREME Court] - the excise duty and sales tax have be excluded from the total turnover - the export turnover does not include excise duty, so the total turnover should also not include excise duty - section 145A(1) requires that the excise duty should be taken into account for determination of income and not for the purpose of computation of export profit. It cannot be construed as apparent mistake liable to be rectified u/s. 154 of the I.T. Act - Relying upon T.S. Balram, ITO vs. Vokart Brothers & Others [1971 (8) TMI 3 - SUPREME Court] - “a mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may conceivably be two opinions” – Decided against Revenue. Deletion of Disallowance on account of depreciation on plant and machinery of non-functional units – Held that:- Following Commissioner of Income Tax Versus Oswal Agro Mills Ltd. & Oswal Chemicals and Fertilizers Ltd. [2010 (12) TMI 947 - Delhi High Court] - As per amended s. 32, deduction is to be allowed in the case of any block of assets, such percentage on the WDV thereof as may be prescribed as per Circular No. 469, dt. 23rd Sept., 1986 - the depreciation was allowable on the basis of concept of block of assets - The Revenue is not put to any loss by adopting such method and allowing depreciation on a particular asset, forming part of the block of assets even when that particular asset is not used in the relevant assessment year - Whenever such an asset is sold, it would result in short term capital gain which would be exigible to tax and for this reason, we say that there is no loss to Revenue either – Decided against Revenue.
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