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M/s Chhatariya Dehydrates Exports Versus Commissioner of Income Tax-25

2015 (8) TMI 371 - BOMBAY HIGH COURT

Entitlement to the benefit under Section 10B - Tribunal concluded that the order of the Assessing Officer needed to be restored to compute the eligible profit for the purpose of Section 10B of the Act on the basis of the ratio of turnover of sales - Held that:- Assessee had originally claimed benefit of Section 10B of the Act in its return in respect of its entire profit i.e. both trading as well as manufacturing activities. The Assessing Officer had called upon the appellant to furnish market r .....

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must establish its case for the exemption and the quantum of exemption it seeks by leading necessary evidence before the authorities. This the appellant failed to do. Reliance upon the decision of the Karnataka High Court in the case of Fusion Software Engg. (P) Ltd. (2011 (11) TMI 448 - KARNATAKA HIGH COURT), to our mind, is misplaced, as in the facts of that case, the exemption under Section 10A of the Act was denied in its entirety to the assessee therein merely because it had not maintained .....

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ded against assesssee. - Income Tax Appeal No. 1636 of 2013 - Dated:- 28-7-2015 - M S Sanklecha And N M Jamdar, JJ. For the Appellant : Mr S C Tiwari along with Natasha Mangat For the Respondent : Mr Arvind Pinto ORDER P. C. This appeal under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 2 January 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 2006-07. 2. The appellant urges the following questi .....

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n of income declaring its total income 'Nil' after claiming exemption of ₹ 1.40 Crores under Section 10B of the Act. 4. During the assessment proceedings, the Assessing Officer noticed that the appellant was also engaged in export trading of dehydrated onions and had for that purpose, purchased dehydrated onions of ₹ 11.19 Crores and almost ₹ 10 Crores out of it from its Associated Enterprises. The appellant accepted the fact that profits on account of exports on accoun .....

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ction 10B of the Act on the basis of the ratio of turnover of sales. The Assessing Officer by Assessment Order dated 30th December, 2008 arrived at profits eligible to Section 10B of the Act at ₹ 55.23 lakhs as against ₹ 1.40 Crores claimed by the appellant. 5. In appeal, the Commissioner of Income Tax (Appeals) after holding that the purchases and sales of dehydrated onions on trading account are not entitled to the benefit under Section 10B of the Act, concluded that the profits at .....

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as well as by the Commissioner of Income Tax (Appeals) concluded that the order of the Assessing Officer needed to be restored. The Tribunal also recorded the fact that the appellant has not maintained separate books of accounts in respect of manufacturing and trading activities and in these circumstances the application of method of turnover i.e. percentage of total sales to arrive at net profit attributable to trading activity and manufacturing activity as adopted by the Assessing Officer was .....

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ppeal) correctly lays down the extent of benefit under Section 10B of the Act available to it and the Tribunal should not have interfered. It is submitted that the Tribunal seemed to have been influenced by an irrelevant factor viz: failure to maintain two separate books of accounts in respect of manufacturing and trading activities so as to claim the benefit of Section 10B of the Act. This is not the requirement and in support, places reliance on the decision of Karnataka High Court in the case .....

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