TMI Blog2019 (1) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... /s had been held to be includible in eligible profits in the preceding assessment years. Appeal of the assessee stands allowed for statistical purposes. - ITA No. 5793/Del/2010 - - - Dated:- 20-11-2018 - SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Appellant : Shri Salil Aggarwal, Advocate For The Respondent : Shri Pradeep Singh Gautam, Sr. DR ORDER PER SUDHANSHU SRIVASTAVA, J.M. This appeal has been preferred by the assessee against order dated 01/10/2010 which has been passed by the Ld. CIT (Appeals) XIX, New Delhi for Assessment Year 2007-08. 2.0 The brief facts are that the Assessee is a limited company incorporated under the Companies Act, 1956 in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved by order dated 30.12.2009 passed by the Assessing Officer, filed an appeal before the Ld. Commissioner of Income Tax (Appeals). The Ld. Commissioner of Income Tax (Appeals) partly allowed the appeal wherein it was held that the Foreign exchange fluctuation gain was profit derived from the undertaking. However Miscellaneous Income and compensation were held to be not derived from the undertaking. 2.2 The Assessee challenged the order dated 01.10.2010 passed by the Ld. CIT(A) before the Income Tax Appellate Tribunal, New Delhi and the Tribunal held that the compensation of ₹ 5,31,107.41 and ₹ 7,300/- out of ₹ 62,363/- of the miscellaneous income was not derived from the undertaking. 2.3 Thereafter, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that in none of the preceding assessment years, disallowance has ever been made. He also referred to the order of assessment passed u/s 143(3) of the Act for the immediately preceding assessment year 2006-07, wherein the AO had himself accepted that miscellaneous income and compensation income was profit derived from the undertaking as no disallowance was made. It was also submitted that miscellaneous income and compensation income have been treated as business income and, as such, in accordance with subsection (4) of section 10B of the Act, both the aforesaid items of income should be profits derived from the export, as the assessee had not made any domestic sales and all the sales of the assessee was export sales. In respect of compens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was part of income for the purpose of computation of eligible profit u/s 10B of the Act. 5.0 On a query from the Bench, both the parties had no objection if the issue was restored to the file of the AO for allowing the claim of the assessee after due verification. 6.0 Having heard both the parties and in view of the undisputed fact that the Revenue had accepted miscellaneous income and compensation as part of the eligible profits for the purpose of computation of claim u/s 10B of the Act coupled with the concurrence of both the parties for the issue being restored to the file of the AO for verification, we restore the issue to the file of the AO with a direction to allow the claim of the assessee after due verification and also af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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