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2018 (9) TMI 711 - AT - Income TaxForeign exchange fluctuation eligibility for deduction u/s 80IC - Held that:- The issue is now squarely covered in favour of the assessee by the decision of CIT Vs. Priyanka Gems [2014 (3) TMI 938 - GUJARAT HIGH COURT] and CIT Vs. Metrochem Industries Ltd.[2016 (7) TMI 1374 - GUJARAT HIGH COURT]. Both these decisions have considered the decision of the Hon'ble Supreme Court in Liberty India Vs. CIT [2009 (8) TMI 63 - SUPREME COURT]. No infirmity in the order of the ld CIT(A) in holding that foreign exchange gain is income derived from industrial undertaking and is eligible for deduction u/s 80IC of the Act. Ground No 1 is dismissed. Customer advances written back as income derived from industrial undertaking - deduction u/s 80IC - Held that:- The customer advances are in the nature of advances against the various orders. When such jobs are cancelled by the customer the assessee recovers the cost of material and consumable supply to the customer from the advance received and shows it as advances written back. Therefore, this partakes the character of sale and hence is income derived from industrial undertaking. The ld CIT(A) has also given these reasons for deciding the issue in favour of the assessee. DR could not show us any reason that why above sum cannot be income derived from industrial undertaking. No infirmity in the order of the ld CIT(A) in holding that customer advances written back is income derived from the industrial undertaking as it has direct nexus with it, hence, eligible for deduction u/s 80IC Sundry balances of provisions written back as income derived from industrial undertaking and eligible for deduction u/s 80IC - Held that:- CIT(A)correctly decided the issue in favour of the assessee. As the provision made was considered as reduction in eligible profit its reversal should be considered as income of undertaking. Miscellaneous receipt received by the assessee is not income derived from industrial undertaking and therefore, same is not eligible for deduction u/s 80IC - Held that:- We have already decided this issue in appeal of the assessee for AY 2010-11 in this order. Therefore, following the same reasoning we hold that miscellaneous income of the assessee is not eligible for deduction u/s 80IC of the Act, accordingly, appeal of the assessee is dismissed.
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