TMI Blog2014 (1) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... wo units in the ratio of their respective turnovers – the order upheld. Deduction in respect of export incentive u/s 10B of the Act – Held that:- The decision in Maral Overseas Ltd. vs. Addl. CIT [2012 (4) TMI 345 - ITAT INDORE] - the export incentives form part of `profits of the business' of the eligible undertaking and hence cannot be excluded from the eligible profit for the purpose of computing deduction u/s.10B – order set aside. Denial of Deduction in respect of Interest income u/s 10B of the Act - So long as a particular item of income falls under the head 'profit and gains of business or profession', the same qualifies for consideration under this section – If the item of income falls under any other head including `Income fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded against Revenue. - ITA No.3930/Mum/2012, ITA No.3931/Mum/2012, ITA No.3648/Mum/2012 - - - Dated:- 5-7-2013 - Shri R. S. Syal AM And Shri Amit Shukla, JM,JJ. For the Petitioner : Shri Surinder Mehra For the Respondent : Mrs. R. M. Madhavi ORDER Per R. S. Syal (AM) : This bunch of three appeals comprising of two appeals for the A.Y.2006-07 and one for the A.Y.-2007-08 involves certain common issues. We are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. A.Y.2006-07 - ITA No.3930/Mum/2012 2. All the grounds deal with certain aspects of deduction u/s 10B. Briefly stated the facts of the case are that the assessee having manufacturing unit at Amritsar claimed deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer has adopted a very reasonable manner in such bifurcation in the ratio of turnover of said two units. In doing so, he did not disturb the amount of `Wages' which was charged only to the manufacturing unit. In our considered opinion, no exception can be found to the view taken by the learned CIT(A) in upholding the allocation of commission and salary between the two units in the ratio of their respective turnovers. The impugned order is, therefore, upheld on this score. 4. The second issue is about denial of deduction u/s. 10B in respect of export incentive amounting to Rs.4,98,114/-. 5. We have heard the rival submissions and perused the relevant material on record. We find that this issue has been decided by the Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness' of the undertaking to be computed in the ratio of export turnover to the total turnover. So long as a particular item of income falls under the head 'profit and gains of business or profession', the same qualifies for consideration under this section. If, however, the item of income falls under any other head including `Income from other sources', the same goes out of the ambit of the eligible profits for the purpose of deduction u/s 10B. The correct nature of the amount of interest of Rs.71,131 is not emanating from the material on record. In our considered opinion the ends of justice would meet adequately if the impugned order on this issue is set-aside and the matter restore to the file of A.O. We order accordingly and direct him t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (5) of section 10B. Once the assessee makes a claim on the basis of an opinion expressed by an expert, which in the present case is the Chartered Accountant, there can be no question of imposition of any penalty on the mere fact that the amount of deduction was reduced by the Assessing Officer. There can never be any doubt on the bona-fide of the assessee in claiming the deduction based on the audit report given by the auditor. Under these circumstances, we are of the considered opinion that the ld. CIT(A) was justified in deleting the penalty u/s. 271(1)(c). We, therefore, uphold the impugned order. 11. In the result, the appeal of Revenue for A.Y. 2006-07 is dismissed. A.Y.2007-08 in ITA NO.3931/Mum/2012 12. This appeal by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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