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2014 (1) TMI 1137 - ITAT PANJIDeduction u/s 80IB - Held that:- Following assessee's own case for A.Y. 2006-07 - The claim of the Assessee for A.Ys 2004-05 and 2005-06 have been allowed - When deduction is allowed in the initial assessment order, there is no reason for disallowing the claim in the year under consideration - The AO has confirmed that the activities undertaken by the Assessee qualifies to be regarded as manufacture and allowed the claim of the Assessee for A.Y. 2004-05 - The principles of consistency would apply and hence it is not open for the Department to question the validity of the allowability of the claim of deduction u/s 80IB(4) for the impugned assessment year by holding that the activities undertaken by the Assessee cannot be regarded as manufacture more particularly when there is no change in the facts and circumstances of the case of the Assessee - Decided against Revenue. Deduction u/s 10B - Held that:- As per section 10B(4) - The deduction available u/s 10B(1) will be the amount which bears to the profit of the business of the eligible undertaking the same proportion as the export turnover bears to the total turnover - The scrap sale is part of the profit of the business of the undertaking - The CIT(A) has rightly re-calculated the exemption available to the Assessee u/s 10B(4) by including the sale of the scrap in the profits of the business of the undertaking for the purpose of computation of the deduction in respect of profit derived from the exports in accordance with the provisions of Sec. 10B(4) - Decided against Revenue.
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