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2015 (10) TMI 591 - AT - Income TaxClaim of deduction of credit balance appearing under the head “Settlement Bargain” under section 80IB - Held that:- In block assessment there was no profit under this head, therefore, reliance of this order cannot be placed in the impugned assessment year. Undisputedly, the orders are placed by the assessee for purchase of raw material and supply of raw material takes some time. When supply is effected at high seas, the rates are fluctuated and profit accrued to the assessee on account of fluctuation rates certainly reduces the cost of raw material, therefore, profit accrued thereon is certainly eligible for deduction under section 80IB of the Act. In the light of these facts, we are of the view that the credit balance accrued on account of settlement of rates is certainly eligible for deduction under section 80IB of the Act and we, therefore, find no infirmity in the order of the ld. CIT(A). Accordingly we confirm his order on this issue. - Decided against revenue. Trade liabilities written off under section 41(1) - CIT(A) deleted addition - Held that:- We find that since it is a trade liability which was not required to pay in this year and it was offered as income and deduction was claimed thereon. The Revenue has not brought out anything on record to establish that these liabilities are not trade liabilities. Therefore, we find no merit in the Revenue’s appeal on this issue. Accordingly we confirm the order of the ld. CIT(A) on this issue.- Decided against revenue.
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