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M/s. Zenith Exports Limited Versus Assistant Commissioner of Income Tax

2017 (2) TMI 504 - ITAT KOLKATA

Disallowance of claim for exemption under section 10B - Held that:- Similar issue in the assessee’ s claim for deduction under section 10B in the context of interest income had come up for consideration before the Bangalore Bench of this Tribunal in the case of ACIT – vs.- Motorola India Electronics (P) Limited [2006 (11) TMI 541 - ITAT BANGALORE ] and after taking into consideration the methodology provided in sub-section (4) for arriving at the export profits of the business of the Undertaking .....

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rap and sundry balances written back clearly formed part of the business income of the assessee, it is of the view that the same should be taken into consideration while computing the profit of the assessee eligible for deduction under section 10B - Decided in favour of assessee. - Disallowance on account of prior period expenses - Held that:- The prior period expenses claimed by the assessee in the year under consideration are disallowed by the Assessing Officer as well as by the ld. CIT( A .....

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h adjustment to the book profit on account of disallowance under section 10B is not permissible as per Explanation to section 115JB as rightly pointed out by the assessee. Even the ld. D.R. has not been able to dispute this position. Also as the addition made by the Assessing Officer s deleted and confirmed by the ld. CIT( Appeals) on account of disallowance of deduction under section 10B substantially while deciding Ground No.1 raised by the assessee in this appeal. Accordingly direct the Asses .....

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05.07. 2016. 2. The issue involved in Ground No. 1 relates to the disallowance of assessee s claim for exemption under section 10B in respect of the following incomes:- Provision for bad and doubtful debts written back Rs.5, 16,789/- Excess provision written back Rs.7, 59,417/- Miscellaneous receipts (Sale of Scrap) Rs.5, 05,375/- Sundry balances written back ₹ 70,249/- Profit on sale of assets ₹ 23,315/- 3. The assessee in the present case is a Company, which is engaged in the busi .....

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nder section 10B in respect of certain receipts aggregating to ₹ 18, 75, 145/- on the ground that the exemption under section 10B was allowed only in respect of receipts, which are directly linked to the export. On appeal, the ld. CIT(Appeals) upheld the action of the Assessing Officer on this issue by observing that for claiming exemption/ deduction under section 10B, the assessee should show that the amount was received from export. He held that the relevant receipts were not directly li .....

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114 ITD 387] and after taking into consideration the methodology provided in sub-section (4) for arriving at the export profits of the business of the Undertaking, it was held by the Tribunal that the entire profits derived from the business of Undertaking should be taken into consideration while computing profit eligible for deduction under section 10B by applying the mandatory formula given in sub-section 4. In my opinion, the ratio laid down by the Coordinate Bench of this Tribunal is squarel .....

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10B after taking into consideration the said receipts and partly allow Ground No. 1 of the assessee s appeal. 5. The issue involved in Ground No. 2 relates to the disallowance of ₹ 8, 92,230/- made by the Assessing Officer and confirmed by the ld. CIT( Appeals) on account of prior period expenses. 6. The prior period expenses of ₹ 8,92,230/- debited by the assessee to the Profit & Loss Account were disallowed by the Assessing Officer in the assessment completed under section 143 .....

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ad produced any evidence to show that the liability for the relevant prior period expenses was crystallized in the year under consideration. 7. I have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that the prior period expenses of ₹ 8, 92,230/- claimed by the assessee in the year under consideration are disallowed by the Assessing Officer as well as by the ld. CIT( Appeals) as the assessee failed to establish on evidence th .....

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