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2023 (5) TMI 408 - AT - Income TaxDeduction u/s 10B - Interest income inclusion/exclusion - HELD THAT:- Full Bench decision of Hon’ble Karnataka High Court in Hewlett Packard Global Soft Ltd. [2017 (11) TMI 205 - KARNATAKA HIGH COURT] may also be relied on for the proposition that all profits and gains of hundred percent EOU including incidental income by way of interest on bank deposits or staff loans would be entitled to hundred percent exemption or deduction under section 10B of the Act. In recent decision in CIT vs. Sankhya Technologies (P) Ltd. [2020 (8) TMI 618 - MADRAS HIGH COURT] held that interest on bank deposits was eligible to be included in profits of hundred percent export oriented unit for purpose of claiming deduction under section 10B of the Act. Thus Interest income would be entitled to claim exemption under section 10B of the Act. AO is directed to modify the assessment accordingly. Exclusion of other incomes, namely, receipt of subsidy and insurance claim from the profits for computing deduction under section 10B is also not sustainable in view of the decision of Riviera Home Furnishing [2015 (11) TMI 1139 - DELHI HIGH COURT] and Moser Baer India Ltd. [2018 (5) TMI 581 - ITAT DELHI] wherein it is held that the above receipts form part of the profit of business of the undertaking and thus eligible for deduction under section 10B of the Act. We set aside the orders of the Ld. CIT(A)/AO and direct the Ld. AO to amend the assessment order suitably. Decided in favour of the assessee. Contention of the assessee that the amount as realized on transfer of DEPB represents gross realization and the issue of deduction of the said benefit under DEPB needs to be decided in the light of the judgment of the Hon’ble Supreme Court in Topman Exports [2012 (2) TMI 100 - SUPREME COURT] We agree with the above contention of the assessee and restore the matter back to the file of the Ld. AO to decide the issue afresh keeping in view the judgment of the Hon’ble Supreme Court in Topman Exports (supra) after allowing opportunity of hearing to the assessee.
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