TMI Blog2013 (9) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... The order of the CIT(A) was confirmed by the Tribunal in further appeal filed by the assessee. The assessee has therefore very fairly considered that the issue of allowing deduction u/s.80-IB on interest income and lease rentals are covered against the assessee. Therefore, the ground of appeal of the assessee is dismissed. Regarding the deduction allowed u/s.80IB on other income, we find that all the facts regarding the details of income are not available from the order of the Assessing Officer and the CI(A) and neither party before us has filed the same. Therefore, we are not in a position to adjudicate the issue completely. Therefore, in our considerate opinion, the issue needs to be adjudicated afresh by the Assessing Officer after bringing all relevant details and facts on record by passing his speaking order. We therefore, set aside the orders of the lower authorities and remand the matter back to the file fo the Assessing Officer to adjudicate the matter afresh by passing his order after allowing reasonable opportunity of hearing to the assessee - Decided against assessee. - ITA No.1635/Mds./07, ITA No.2510/Mds./07, ITA No.1180/Mds./10, ITA No.1181/Mds./10, ITA No.1080/M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002-03 would stand remanded to the Assessing Officer. The Assessing Officer should determine as to whether the assessee had incurred any expenditure (direct or indirect) in relation to dividend income/ income from mutual funds which does not form part of the total income as contemplated u/s.14A. The Assessing Officer can adopt a reasonable basis for effecting the apportionment. While making that determination, the Assessing Officer should provide a reasonable opportunity to the assessee of producing its accounts and relevant or germane material having a bearing on the facts and circumstances of the case. 5. We therefore, set aside the orders of the lower authorities and restore the matter back to the file of the Assessing Officer for re-adjudication of the issue afresh in the light of the decision of Hon ble Bombay High Court in the case of Godrej and Boyce Manugacturing Co. Ltd., Vs. DCIT (supra) after allowing reasonable and proper opportunity to the assessee. This ground of appeal of the assessee as well as of the Revenue are allowed for statistical purposes. 6. Ground No.2 of the assessee s appeal for the assessment years 2003-04 2004-05 are directed against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the net profit of eligible - -- for the purpose of deduction u/s.80I /IA/IB of the Income Tax Act, 1961. He further submitted that as prayed by the the authorized representative of the assessee the matter may be restored to the file of the Assessing Officer foer verification and if it is found that other income pertains to receipts of the DEPB, then no deduction should be allowed to the assessee u/s.80-IB of the Act on such receipts. 10. After hearing the rival submissions and perusing the materials on record, we find that the Assessing Officer disallowed the deduction u/s.80-IB on interest income, lease rental and other income and the CIT(A) in appeal disallowed the deduction to the assessee on interest income and lease rental following his predecessor s order for the assessment year 2001-02 in assessee s own case and allowed deduction to the assessee on other income. The order of the CIT(A) was confirmed by the Tribunal in further appeal filed by the assessee. The assessee has therefore very fairly considered that the issue of allowing deduction u/s.80-IB on interest income and lease rentals are covered against the assessee. Therefore, the ground of appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y manufacturing activity done by the appellant nor it involves any plant and machinery owned by it. CIT(A) expressed his view that the assessee does nto satisfy the primary conditions prescribed in Sec.80-IB for the purpose of availing deduction u/s.80-IB as far as activities carried out at the forge shop are concerned and it has not bee pointed out at any stage whether the said forge shop assessee was also claiming deduction u/s.80-IB or not on the income earned by them from the said forging activities. CIT(A) placed his reliance in the decision of jurisdictional High Court in the case of CIT V. Tamil Nadu Heat Treatment and Fetting Services (P) ltd., (No.1), 238 ITR 529 (Mad.), wherein it has been held that process of heat treatment and forging etc. tentamounts to manufacturing activity and the assessee is entitled to special deduction. Since the forge shop is entitled to deduction u/s.80-IB by following the ratio of the above said decision, it becomes apparent that the same turnover cannot be subject matter of deduction u/s.80-IB in the hands of the assessee company. CIT(A) upheld the action of the Assessing Officer of excluding the income of Rs.43,02,478/- earned from the forge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emicals in 245 ITR 769 (Bom.), which was followed by Hon ble Madras High Court in the case of M/s.Wheels India Ltd., 275 ITR 319 (Mds.) and also the decision of Chandigarh bench of the Tribunal in the case of -- -Cycles in 42 ITD 426 (Chd.) has held that scrap sales are includible in the total turnover while computing deduction u/s.80HHC. 17. The authorized representative submitted that the issue stands decided against the assessee by the decision of Hon ble Supreme Court in the case of CIT Vs. K.Ravindranthan Nair [2007] 295 ITR 228, 18. The Departmental Representative agreed with the submissions made by the authorized representative. 19. We have heard the rival submissions and perused the orders of the lower authority and materials available on record. The Hon ble Supreme Court in the case of CIT Vs. K.Ravindranthan Nair (supra) has held that for the purpose of working out the formula and in order to avoid distortion in arriving at export profits clause-(baa)stood inserted to say that although incentive profits and independent incomes constituted part of the gross total income. They had to exclude from gross total income because such receipts has no nexus to the export tu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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