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2022 (11) TMI 1108 - AT - Income TaxIncome under the head ‘income from other sources’ - HELD THAT:- Although, the assessee has reported a sum under the head ‘income from other sources’, but no details have been furnished to prove source and nature of income except stating that it should be considered as income derived from non-export activities. In absence of any specific details, it is difficult to accept the contentions of the assessee that it should be derived from business activity. There is no error in the reasons given by the authorities below to assess a sum under the head ‘income from other sources’ and thus, we are inclined to uphold the findings of the CIT(A) and reject the ground taken by the assessee. Unrealized sale proceeds from profits as well as from the total turnover - HELD THAT:- We find that the Hon’ble Madras High Court in [2014 (1) TMI 1588 - MADRAS HIGH COURT], has considered the issue of allowing unrealized sale proceeds from profit or total turnover, and after considering relevant submissions held that the assessee could not furnish necessary evidences before the AO to prove that the RBI has permitted extension of time for remitting sale proceeds in foreign currency in India in order to allow the assessee to get the benefit. We are of the considered view that there is no error in the reasons given by the CIT(A) to sustain the additions made by the AO and thus, we reject the ground taken by the assessee. Non-exclusion of unrealized sale proceeds from export turnover as well as total turnover - HELD THAT:- The issue of exclusion of expenditure including foreign currency loss or unrealized sale proceeds from export turnover and also from total turnover, is no longer res integra. In the case of HCL Technologies Ltd.. [2018 (5) TMI 357 - SUPREME COURT] had considered an identical issue and held that expenses incurred in foreign currency, excluded from total turnover also needs to be excluded from total turnover. In the case of CIT v. Abad Fisheries [2002 (8) TMI 95 - KERALA HIGH COURT] held that unrealized sale proceeds have to be excluded from export turnover as well as total turnover. Therefore, considering the facts and circumstances of the case and also by following the decision of the Hon’ble Supreme Court in the case of HCL Technologies Ltd.(supra), we direct the AO to re-compute deduction u/s.10A of the Act, by excluding unrealized sale proceeds from export turnover as well as total turnover. Depreciation on STP assets - non-furnishing of sufficient evidences - AO has disallowed depreciation on STP assets on the ground that the assessee could not file supporting invoices for new assets acquired and installed during the Financial Year relevant to the assessment year 2001-02 - HELD THAT:- Even before us, the assessee could not explain with necessary evidences, the differential figures of depreciation claim in the P & L A/c and in the statement of total income, computation of income for STPI Units & non- STPI Units. Since, the assessee could not file necessary invoices in support of additions to fixed assets and also basis for adopting different figures of depreciation for computing income from STPI Units & non-STPI Units, we are of the considered view that the issue needs further verification from the AO and hence, we set aside the issue to the file of the AO and direct the AO to re-examine the issue in light of various averments made by the assessee and also taken into account computation of depreciation for STPI Units & non-STPI Units. Depreciation on Intellectual Property Rights - HELD THAT:- We are of the considered view that there is no error in the reasons given by the CIT(A) to delete the additions made towards depreciation on IPRs and thus, we are inclined to uphold the findings of the CIT(A) and reject the ground taken by the Revenue. Deduction u/s 10A - Quantification of Export Turn over - HELD THAT:- On the basis of subsequent development, the Ld.CIT(A) has re-computed total turnover by excluding unrealized sale proceeds by following the decision of the Hon’ble Kerala High Court in the case of Abad Fisheries [2002 (8) TMI 95 - KERALA HIGH COURT] because said findings are further fortified by the decision of the Hon’ble Supreme Court in the case of HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] where it has been held that any expenditure excluded from export turnover needs to be excluded from total turnover also. Therefore we are of the considered view that there is no error in relief allowed by the Ld.CIT(A) in re-computing deduction u/s.10A and thus, we are inclined to uphold the findings of the Ld.CIT(A) and reject the ground taken by the Revenue. Unrealized sale proceeds from total turnover - HELD THAT:- We find that this issue is covered in favour of the assessee by the decision of in the case of HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] where it has been clearly held that expenditure excluded from export turnover, also needs to be excluded from total turnover. Therefore, by respectfully following the decision in the case of HCL Technologies Ltd. (supra), we are of the considered view that there is no error in the reasons given by the Ld.CIT(A) to exclude unrealized sale proceeds from total turnover and thus, we are inclined to uphold the findings of the Ld.CIT(A) and reject the ground taken by the Revenue.
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