Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 110 - AT - Income TaxDeduction U/s 80IE of the Act - eligible of deduction towards excess provision written back - foreign currency fluctuation gain - manufacturing work in Arunachal Pradesh - Held that: - the issues are covered in favor of the assessee by the order of the ITAT in assessee’s own case for the assessment year 2011-12 [2016 (7) TMI 1050 - ITAT JAIPUR], where it was held that The foreign currency gain is the part of raw material there is nothing wrong in this claim. Assessee is entitled for deduction u/s 80IE of the Act. As regards excess provision written back it was held that this is the expenditure, which has been booked in excess in earlier year and by this amount the deduction u/s 80IE has been reduced in the said year since the deduction is available for the unit for consecutive 10 years. AO’s action in treating the excess provision written back as income cannot be justified, hence deleted - appeal dismissed - decided against Revenue.
|