TMI Blog2014 (9) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... already debited the amount paid under sales tax as its expenses forming part of cost of goods purchased for export, however, subsequently part of such sales tax was refunded which go to reduce the cost of purchases. The corresponding increase in profit due to such refund is eligible for claim of deduction u/s.10B. The sales tax refund is not a separate source of income nor it is the due to any Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be given benefit of deduction u/s.10B with respect to such amount of sales tax refund. Appeal of the assessee is allowed for statistical purposes. - ITA No.7699/Mum/2012 (Assessment Year : 2008-09) - - - Dated:- 19-9-2014 - Shri R.C.Sharma, AM And Shri Amit Shukla, JM Assessee by : Dr. K. Shivraam Revenue by : Shri Premanand. ORDER R.C.SHARMA (A.M.) : This is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered rival contentions, carefully gone through the orders of the authorities below and found that the AO has declined claim of deduction u/s.10B in respect of sales tax refund credited in the profit and loss account. Such sales tax refund is not a separate source of income, it is the amount which the assessee got back on its sales tax assessment when it was found that assessee has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government policy for paying any incentive. Neither it is export incentive nor any payment under scheme of Government. Therefore, the source of receipt cannot be attributed to such scheme. It is simply refund of excess sales tax paid which has already formed part of cost of purchases. We accordingly, direct the AO to verify as to whether the sales tax refund received by the assessee already forme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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