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2014 (10) TMI 317 - ITAT JODHPURDeduction u/s 80HHC - Business of mining and export of marble blocks - Reduction of 90% of export incentive – Held that:- CIT(A) has correctly allowed the claim of deduction u/s 80 HHC – following the decision in The Commissioner of Income Tax and others Versus M/s. Aravali Minerals & Chemical Industries Pvt. Ltd. and others [2013 (6) TMI 190 - RAJASTHAN HIGH COURT] - Tribunal was justified in allowing the deduction u/s 80HHC of the Act regarding export of cut and polished marble blocks during relevant years by the assessee - since the Circular No.693 dated 17th November 1994 does not adversely affect claims of the assessee and the assessees are entitled to benefit of deduction u/s 80HHC. Addition on account of fall in GP – Held that:- The G.P. rate in this year has been on lower side - the decrease in G.P. rate stands explained by the undeniable reasons that there is heavy increase in purchase price, freight cost and export cost. The books of accounts were lost and assessee has filed an FIR - The assessee has produced particulars of blocks-purchased and purchase bills were made available vide letter dated 05.12.2005 - The AO has not invoked section 145(3) in its terms - Therefore, fall in G.P. rate cannot be made a reason for involving section 145(3) – Decided against Revenue.
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