Tribunal rules on revenue's appeal for interest & profit, upholding relief and limiting additions.

The Tribunal partially allowed the revenue's appeal for the assessment year 2009-2010, upholding relief for interest charged from Associated Enterprise and restricting the addition made by the TPO. For the assessment year 2010-2011, the revenue's appeal was dismissed as the Tribunal found no fault in granting relief on interest charged from Associated Enterprise and excluding profit from the SEZ unit while computing book profit under section 115JB.

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Issues:
1. Assessment year 2009-2010: Relief on interest charged on outstanding amount from Associated Enterprise.
2. Assessment year 2009-2010: Profit under section 10A not liable for inclusion in book profit under section 115JB.
3. Assessment year 2010-2011: Relief on interest charged on outstanding amount from Associated Enterprise.
4. Assessment year 2010-2011: Profit under section 10A not included in book profit under section 115JB.

Assessment year 2009-2010:
The revenue contested the CIT(A)'s decision to allow relief to the assessee concerning interest charged on outstanding amounts from Associated Enterprise. The Tribunal referred to the order in the assessee's previous case and the decision of the Jurisdictional Bombay ITAT in the case of Indo American Jewellery Ltd. The Tribunal upheld the deletion of the addition made by the TPO for interest charges, citing uniformity in not charging interest from both AE and non-AE debtors. The Tribunal also considered the Revenue's contention in a Miscellaneous Application (M.A.) regarding interest calculations and restricted the addition to a specific amount. The Tribunal partially allowed the revenue's ground for the assessment year 2009-2010.

Assessment year 2010-2011:
Similar to the previous year, the revenue challenged the CIT(A)'s decision to grant relief on interest charged on outstanding amounts from Associated Enterprise. The Tribunal noted that the credit allowed to AE was less than that to non-AE, leading to no adjustment being necessary. The Tribunal followed the earlier order in the assessee's case and found no fault in the CIT(A)'s decision to delete the AO's adjustment for interest on delayed receivables from AE. Additionally, the revenue contested the computation of book profit under section 115JB, arguing that the profit from the SEZ unit exempt under section 10A should be included. However, the Tribunal upheld the CIT(A)'s decision to exclude the profit earned from the SEZ unit while computing book profit under section 115JB. Consequently, the appeal of the revenue for the assessment year 2009-2010 was partly allowed, while the appeal for the assessment year 2010-2011 was dismissed.

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