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2015 (10) TMI 1629 - ITAT AHMEDABAD

2015 (10) TMI 1629 - ITAT AHMEDABAD - TMI - Eligibility for section 80IB - Income from exchange rate difference - Held that:- We find that hon'ble jurisdictional high court in the case of CIT vs. Alps Chemicals Ltd.(2014 (10) TMI 251 - GUJARAT HIGH COURT) holds that similar foreign exchange fluctuation gain are entitled for section 80 IB deduction. The Revenue fails to point any distinction on facts

Sundry balances written back - income in question has been derived from its industrial .....

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- ITA No. 3173/Ahd/2011 - Dated:- 19-6-2015 - Pramod Kumar, AM And S. S. Godara, JM,JJ. For the Appellant : Shri Dinesh Singh, Sr.DR For the Respondent : Shri Parin Shah, AR ORDER Per Shri S S Godara Judicial Member Assessment Year:2007-08 This Revenue's appeal for assessment year 2007-08 arises from order of the Commissioner of Income Tax (Appeals)-Valsad dated 14-09-2011 holding assessee's income from exchange rate difference of ₹ 2,38,164/- as eligible for section 80IB deduction .....

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ion profits earned on account of purchase of forward contract exchange rate fluctuation benefit. He treated the same as having no connection with the assessee's export business. The CIT (A) has reversed the said finding by quoting decision of the hon'ble Mumbai high court in CIT v/s. Rachana Udyog (Bom.) ITA No.2394 of 2009 dated 13-01-2010 holding it as eligible for section 80IB deduction. 4. We have heard both the parties and perused the material available on record. We find that hon&# .....

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s eligible for section 80 IB deduction. 6. The CIT (A)'s order discusses the Assessing Officer's observation, assessee's submissions and findings under challenge as under:- "6. Ground No.3 ; The Ld. AO has erred in considering sundry balances written back amounting to ₹ 3,05,574/- as not eligible for deduction u/s. 80-IB of the Act. 6.1 Observations of AO : While making the addition, AO observed that the sundry balances written off represents the amount of old creditors af .....

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, the said receipt is treated as income but the same can not be treated as income derived' from industrial undertaking and therefore, the same is not eligible for deduction u/s. 80IB of the Act. He also referred to the decision of the DCIT v/s. Mira Industries 87 ITD 475. The AR of the appellant contended that it is an undisputed fact that when such an amount is earlier debited to the profit and loss account, the benefit u/s. 80IB must have gone down in those years and year in which, the sam .....

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