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2015 (6) TMI 249 - AT - Income TaxEligibility for deduction under section 80IB in respect of Daman unit as well as Goa unit - income derived from FDR Interest - Held that:- The assessee has filed certain papers to prove nexus of borrowed funds and FDR interest income. Since these documents were not filed before the AO and the CIT(A), we deem it proper to admit these documents since it goes to the root of the issue, and therefore, this issue is restored to the file of the AO to decide the same in accordance with law, after considering the additional evidences filed by the assessee. - Decided in favour of assessee for statistical purpose. Eligible for deduction U/s.80IB - assessee failed to commence the production before the cut-off date for commencement of production i.e. on or before 31.03.2004 - CIT(A) allowed claim - Held that:- Since the deduction has been allowed in the first year of operation i.e. in the Asstt.Year 2005-06, therefore, more so, when no material is placed on record by the Revenue suggesting that the order of the Tribunal is set aside or reversed by Hon’ble High Court or Hon’ble Apex Court, we do not find any infirmity in the order of the CIT(A), the same is hereby confirmed and the ground nos.1 and 2 of the Revenue are rejected. - Decided against revenue. Eligibility for exchange rate difference - Held that:- Difference on account of exchange rate fluctuation is liable to be allowed u/s.80IB. The exchange rate fluctuation arises out of and is directly related to the sale transaction involving the export of goods of the industrial undertaking. Respectfully following the decision of the Hon’be Bombay High Court I the case of CIT Vs. Rachna Udyog (Bom) [2010 (1) TMI 38 - BOMBAY HIGH COURT ] also followed in in the case of CIT Vs. Liberty India (2009 (8) TMI 63 - SUPREME COURT) - Decided in favour of assessee. Disallowance of deduction on the sundry balance written back - CIT(A) deleted the addition - Held that:- There is no dispute that the amount in question was treated as expenditure related to the manufacturing activity. Therefore, we do not find any good reason to interfere with the order of the CIT(A) on this issue, which is hereby confirmed - Decided against revenue. Addition of under valuation of scrap sale - CIT(A) deleted addition - Held that:- Excise Department has not adjudicated the case. Therefore, following the order of the Co-ordinate Bench of Tribunal ACIT Vs. Santro Tiles Ltd. [2015 (6) TMI 272 - ITAT AHMEDABAD] we deem it proper to restore this issue to the file of the AO with direction to decide the issue afresh, after the adjudication order is passed by the Central Excise department - Decided in favour of revenue for statistical purpose.
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