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2018 (5) TMI 130 - AT - Income TaxAddition to forfeiture of share application money - assessment year - Held that:- We find that the share application money has continued to be reflected as part of the ‘Shareholder’s Funds’ in the past since Assessment Year 2005-06 and in the instant year, no event has taken place to say that there is any write-back of the share application money. AO, in our view, has grossly erred in holding that “assessee has not been able to give any specific reason as to why the same cannot be assessed in the current year”. The Assessing Officer has wrongly put the onus on the assessee, rather, in our view, the onus was on the Assessing Officer to show as to why, inspite of assessee having written-back the amount in the subsequent year, the impugned sum was liable to be assessed in the instant year itself. Assessing Officer has assessed the same in the instant year without any rationale which, in our view, has been rightly set-aside by the CIT(A). Determination of profit u/s 115JB - MAT - Held that:- We affirm the decision of CIT(A) in holding that the income relating to the SEZ unit is excludible while computing the book profit u/s 115JB of the Act. Thus, the CIT(A) made no mistake in setting aside the action of the Assessing Officer, which is hereby affirmed. Computation of deduction eligible u/s 10A - Held that:- In the case before us, it is factually evident that the interest income on FDRs with bank is with respect to the borrowings which have in turn been utilised for the eligible business and, therefore, such interest income would be eligible for the benefits of Sec. 10A of the Act. So far as the interest earned on electricity security deposit is concerned, in a similar situation, our co-ordinate Bench in the case of M/s. Dania Oro Jewellery Pvt. Ltd. vs ITO [2018 (1) TMI 240 - ITAT MUMBAI] held such interest income to be eligible for the benefits of Sec. 10A of the Act. Exclusion of sundry credit balances written-back in determining the profits of business for computing deduction u/s 10A - Held that:- The details of the sundry credit balances written-back. A perusal of the same shows that in most of the cases, the items are revenue in nature and, therefore, in our view, such income is also eligible for the benefits of Sec. 10A of the Act. Assessment of interest income - Held that:- The said income has been reduced twice and, therefore, rectification needs to be carried out to increase the profits of the business to that extent. The said aspect is factual in nature and the matter is restored back to the file of the Assessing Officer for appropriate appreciation of facts and decision thereon. Thus, on this aspect, assessee succeeds for statistical purposes. Exclusion of unrealised export sale proceeds from the figure of export turnover in order to calculate deduction admissible u/s 10A - Held that:- The plea raised by the assessee before us is fair and proper and the same is also not disputed by the ld. DR. Accordingly, we direct the Assessing Officer to consider any sum realised out of the unrealised export sales of ₹ 5,18,97,639/- as part of the export turnover as and when the same is received as per the extant guidelines of Reserve Bank of India for the purpose of calculating deduction u/s 10A of the Act. Thus, on this aspect, assessee succeeds for statistical purpose.
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