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2015 (9) TMI 224 - AT - Income TaxDisallowance of depreciation - CIT(A) allowed the claim - Held that:- It is to be seen that the CIT(A) has only restored the issue back to the Assessing Officer for factual verification as to whether the assesssee has already considered the very depreciation in its computation not as so as to avoid double disallowance. The assessee places before us the Assessing Officer’s consequential order dated to be 22/02/2010 wrongly mentioned expressly stating CIT(A)’s order under challenge. The impugned disallowance on account of depreciation of ₹ 8,62,13,944/- stands deleted in the said order. The Revenue’s grievance is rendered infructous. Its corresponding ground accordingly fails. - Decided against revenue. Other income not deducted u/s. 10B - Held that:- There is no dispute that this sum of ₹ 8,24,522/- has arisen from insurance claim of exported goods, purchase material discounts and ‘other’ income of ₹ 7,41,717/-, ₹ 81,706/- and ₹ 1,099/-; respectively. The CIT(A) accepts assessee’s arguments and holds that the same is directly linked to its business in question as per the tribunal’s order in case of Aarti Industries [2005 (2) TMI 428 - ITAT AHMEDABAD-C]. The Revenue fails to rebut these findings of fact and law by quoting cogent material or case law to the contrary. We observe in these facts that these amounts lead to reduction in purchase price of the corresponding material purchased for the purpose of business only. The CIT(A)’s findings under challenge are affirmed.- Decided against revenue. Sec. 10B deduction claimed on interest received on late recoveries from customers by assessee - Held that:- The assessee is otherwise entitled for sec. 10B deduction being a newly established hundred percent export oriented undertaking. This statutory provision grants deduction of such profits and gains as are derived from a hundred percent export oriented undertaking from export of articles or things or computer software. The assessee’s stand throughout is that this interest sum of ₹ 20,82,239/- has arisen from late payments of export proceeds only from overseas export customers. Even the CIT(A) observed that the impugned interest can be treated to have been derived from industrial undertaking since the same is received from debtors is part of profits, but not derived from exports. We disagree with this reasoning as the interest has been derived from export proceedings of the eligible business unit only. We refer Nirma Industries Ltd case (2006 (2) TMI 92 - GUJARAT High Court ) in this backdrop of facts and hold that assessee’s interest sum of ₹ 20,82,239/- realized from its export customers on account of delayed payments of export proceeds forms part thereof only so as to be entitled to be treated as eligible profits and gains from export business only as the same is not an independent receipt - Decided in favour of assessee.
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