2014 (4) TMI 315

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....siness of manufacturer and exporter of Polyester filament/texturising/Nylon/covered/twisted and dyeing of yarn, had two 100% export oriented unit plants at Silvassa & Vapi. The assessee, while filing the return of income had declared a total income of Rs.2,62,33,257/- after claiming deduction of Rs.2,21,68,998/- of Silvassa Unit and Rs.75,10,991/- of Vapi Unit under Section 10B of the I.T Act and deduction under Section 80HHC of Rs.8,49,258/-. During the assessment proceeding, the AO found that the assessee had claimed excess deduction under Section 10B and the deduction in respect of Silvassa Unit was computed at Rs.1,64,64,282/- and in respect of Vapi Unit, it was computed at Rs.64,32,829/-. According to the AO, the assessee had claimed d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ming deduction under Section 10B by virtue of sub Section 4 of section 10B. The said claim of the assessee is supported by the decision of the Tribunal in the cases of M/s Greytrix (India) Pvt. Ltd., in ITA No.5787/Mum/2009 for A.Y.2006-07 and M/s Jewelex International Pvt. Ltd., in ITA No.3302/Mum/2009 for A.Y.2006-07. Therefore, the claim of the assessee including the interest income for the purpose of claiming deduction under Section 10B is justified and the same has a legal basis. As regards the second issue of inclusion of the insurance and freight charges within the excess claim, it is the contention of the Ld.AR that the same is out of a bonafide mistake and, hence, the confirmation of the levy of penalty is not justified. 4.1 On ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion that the Tribunal in the cases of M/s Greytrix (India) Pvt. Ltd., and M/s Jewelex International Pvt. Ltd., (supra), has held that once a conclusion is reached that the interest income forms part of total income, sub section 4 of section 10B takes over and the interest income can be included in the profits for the purposes of claiming deduction under section 10B of the Act. Similar view has been expressed by the Tribunal in the case of Living stones Jewellery (P) Ltd Vs DCIT [(2009) 31 SOT 323 (Mum)] in the context of section 10A of the Act. Considering the decisions of the Tribunal in the said cases, we are of the considered opinion that the claim of the assessee in including the interest income in the claim made under section 10B is a ....