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2018 (6) TMI 1027 - AT - Income TaxEligibility of deduction u/s.10B - Held that:- The issue of eligibility of deduction u/s.10B has already been decided by the Tribunal in the earlier years, that the Department has challenged the order of the Tribunal before the honorable Bombay High Court, that the honorable court has not decided the issue till date. Respectfully following the order of the Tribunal for the earlier years, we decide the first effective ground of appeal against the AO. Claim of deduction u/s.10B on interest income,exchange loss, and hedging gain - Held that:- FAA has given a finding of fact that sundry credit balance written back represented the sundry creditors related to the export business of the assessee and that the said expenses were considered as part of export business. There is nothing on record to prove that the order of the FAA is factually incorrect. Similarly, it is found that the disputed interest income was earned on fixed deposits pledged with bank or the authorised brokers, that it was a pre-requisite to carry the hedging transaction, that the revenue generated by it from overseas, that hedging transaction were entered into by the assessee as a safeguard against exchange rate fluctuation, that hedging is directly related to export business of the assessee. Applicability of provisions of section 115JB - income relating to SEZ unit - Held that:- As relying on Genesis International Ltd. [2012 (12) TMI 491 - ITAT MUMBAI] and G Jewel Craft [2014 (11) TMI 980 - ITAT MUMBAI] directed the AO to exclude the income relating to SEZ unit, while computing book profit u/s.115JB of the Act. Claim of the assessee of employee’s contribution to PF and ESCI - Held that:- As decided in Hindustan Organics Chemicals Ltd.(2014 (7) TMI 477 - BOMBAY HIGH COURT) and Ghatge Patil Transporters Ltd. (2014 (10) TMI 402 - BOMBAY HIGH COURT) held that employee’s contribution to PF had to allowed as deduction, if it was paid by the employer before the due date of filing of income.
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