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2019 (5) TMI 842 - AT - Income TaxClaim for exemption u/s. 10B OR 80HHC - assessee had not opted for benefits u/s. 10B in that year - deduction u/s. 80HHC was not granted on exports made through export houses on the ground that no disclaimer certificates were filed - appeal before CIT(A) dismissed on technical ground which was restored by ITAT - in second round assessee claimed deduction u/s. 10B - HELD THAT:- Admittedly, the assessee claimed deduction u/s. 80HHC in the return of income which was duly granted. Subsequently, before the first appellate authority, the assessee made a claim of deduction u/s. 10B in respect of the profit of the CAPs Sea Food Unit which is said to be 100% EOU, without withdrawing the claim u/s. 80HHC . The assessee may exercise his option before the due date of furnishing the return of income u/s 139(1) for the assessment year commencing form 1st April, 1989, furnishes to the Assessing Officer a declaration in writing that the provisions of sub-section (1) of section 10B may be made applicable to it for the relevant assessment year and if it does so, then the provisions of sub-section (1) of section 10B shall be made applicable to it for the relevant assessment year. Accordingly, the provisions of sub-section (4) of section 10B shall also apply while computing the total income of the assessee for the relevant assessment year immediately succeeding the last of such assessment year or in subsequent years. In the present case, the assessee has not opted for the deduction u/s. 10B in its return of income and also has not filed the relevant details so as to avail deduction u/s. 10B before framing of the assessment. As such the assessee cannot be granted deduction u/s. 10B. So long as the assessee has not made available the audit report and other documents pointed out by the CIT(A) in terms of section 10B before framing of the assessment, the claim of deduction u/s. 10B cannot be granted. Further, the assessee cannot claim the exemption u/s. 10B without withdrawing the claim which was already granted u/s. 80HHC - Decided against assessee Addition towards interest u/s. 244A on income tax refund as income from other sources - CIT(A) rejected this ground of the assessee on the reason that since the interest was actually granted to the assessee, the same is taxable irrespective of any pending assessments - HELD THAT:- Admittedly, in the present case, the assessee was in receipt of interest on refund. Since the assessee was actively following the mercantile system of accounting and the income was accrued and received by the assessee, the same is to be taxed in the assessment year under consideration. The assessee cannot postpone the liability of payment of tax on the income tax refund on the reason that it would be withdrawn or reduced by the Department subsequently. If there is withdrawal or reduction by the Department, the remedy lies to the assessee elsewhere and not at this stage - Decided against assessee
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