9911796707
TMI Blog2014 (3) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,910/- for the calculation of book profit. 2. The learned CIT(Appeals) has erred in law and on facts of the case in considering effect of sale of scrap and disallowance of its expenses relatable to export turnover for the purpose of deduction u/s. 10-B of the IT Act, 1961." 2. The A.O. while computing the income u/s. 115JB had reduced amount on brought forward losses or brought forward depreciation, whichever is less as per books of account at Rs.6,03,926/- and computed income u/s. 115JB at Rs.66,74,326/-. 3. Being aggrieved by the order of the A.O., the assessee carried the matter before the CIT(A) who had observed that as regards depreciation to be set off his concern, the A.O. clearly allowed the set off brought forward depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t included. The deduction u/s. 10B is calculated by the A.O. as under: Profit as shown 3,11,99,078 Less: Interest income 2,75,939 (A) Eligible Profit 3,09,23,139 (B) Export turnover as shown 763,82,81,765 Total Turnover as shown 64,58,63,282 Add: Income from sale of scrap & Packing material 26,61,927 (C) Total turnover for the purpose of Section 10B 64,85,25,209 Allowable deduction u/s. 10B (A), (B) / (C) 3,04,34,709 6. Being aggrieved by the order of the A.O., the assessee carried the matter before the CIT(A) who had allowed the appeal partly by observing as under: "4.3 I have considered the contentions of the appellant as well as the assessment order. It is clear that the interest income of Rs.2,75,939/- has been earned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the A.O. However, ld. A.R. for the assessee argued that ld. CIT(A) has allowed the appeal by considering the various decisions and computed the book profits. Therefore, there is no discrepancy in the order of the CIT(A). 8. We have heard the rival contentions and perused the material on record. The A.O. did not make any adjustment for expenses in computing 10B deduction, who has made the adjustment on account of expenditure relatable to any income to which Section 10 applies for the purpose of 115JB which has been held by the ld. CIT(A) against the law and he had allowed the appeal for Section 115JB computation of income. Thus, Revenue's ground no.2 does not exist from the order of the A.O. as well as order of the CIT(A). 9. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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