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2015 (11) TMI 1757 - AT - Income TaxDeduction u/s. 80IB on the amount of DEPB - Held that:- Hon’ble Supreme Court in the case of Baby Maine Exports, [2007 (3) TMI 206 - SUPREME COURT] relied by the assessee before us. In this decision, Hon’ble Apex Court has held that the premium paid by the export house or the trading house to a supporting manufacturer is an integral part of the turnover of the supporting manufacturer and was thus includible in the profits of the business eligible for deduction u/s. 80HHC. The assessee was entitled for deduction u/s. 80IB in respect of sale of DEPB received as supporting manufacturer. In view of catena of decisions relied upon by the assessee, in our considered view, the conclusion of the CIT(A) denying deduction u/s. 80IB qua purported DEPB receipt, is not found to be correct. No material is adduced by the DR to take a contrary view. We, therefore, reversing the impugned order, hold that the assessee is entitled for deduction u/s. 80IB of the Act. This issue is decided in favour of the assessee as such. The ground No. 1 is accordingly allowed. Computation of deduction u/s. 80HHC and 80IB ignoring the provisions of section 80IB(13) r/w sec. 80IA(9) - Held that:- Referring to the varied decisions in the matter laying our hands on the decision favourable to the assessee rendered in the case of Associated Capsules (P) Ltd. [2011 (1) TMI 787 - BOMBAY HIGH COURT] relied by assessee, we reverse the order of the CIT(A) holding that deduction u/s. 80IB would not go to reduce the total income for the purpose of calculating deduction u/s. 80HHC. Accordingly, this issue is decided in favour of the assessee. Disallowance on account of foreign traveling - Held that:- For want of any bills/vouchers or supporting evidence to substantiate foreign traveling expenses to the extent of ₹ 1,47,827/-, the ld. Authorities below have rightly disallowed the same. Therefore, this ground of appeal raised by assessee has no force and is liable to be dismissed.
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