TaxTMI 
TaxTMI 
2015 (1) TMI 52
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....eals), they are heard together and disposed off by this common order for the sake of convenience. ITA Nos.2267 to 2270/Mds/2013: (Revenue Appeals): 2. These appeals are filed by the Revenue for the assessment years 2005-06 to 2008-09. The only issue in all these appeals of the Revenue is that Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to recomputed deduction under section 10A by excluding freight expenses from export turnover and total turnover for computation of deduction under section 10A of the Act. The Assessing Officer while completing assessments excluded freight charges from export turnover. The Assessing Officer held that freight charges incurred in foreign currency attributable to delivery of co....
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.... export turnover as defined under Explanation 2(iii) of section 10B of the Act should also be excluded from total turnover for the purpose of computing relief allowable under section 10Bof the Act. Respectfully following the same, we uphold the order of the Commissioner of Income Tax (Appeals) in all these four years on this issue and reject the grounds of appeal raised by the Revenue. ITA No.2220/Mds/2013 (A.Y.2007-08): 6. The only issue in the appeal of the assessee is that Commissioner of Income Tax (Appeals) erred in sustaining the order of the Assessing Officer in treating subsidy received by the assessee as income. The Assessing Officer in the course of assessment proceedings noticed that assessee received subsidy to the tune of Rs.....
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....tmental Representative supporting the order of the lower authorities submits that general subsidy received by the assessee is not capital in nature. Since these subsidies are not received for any setting up of industry and therefore subsidy received by the assessee for electronics and workmen are in the nature of revenue. He further submits that in view of the decision of the Hon'ble Supreme Court in the case of Sahney Steel & Press Works Ltd. (228 ITR 253), subsidy received by the assessee is not capital in nature, therefore the said subsidy was rightly brought to tax as revenue. 10. Heard both sides. Perused orders of lower authorities and the decisions relied on. The assessee in the course of assessment proceedings appears to have a....
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....for undertakings situated in SEZ under the Foreign Exchange Management Act, 1999. Counsel places reliance on the grounds of appeal. 13. Departmental Representative vehemently supports the order of lower authorities in rejecting the deduction under section 10A of the Act on sale proceeds in foreign exchange not brought into India within six months from the end of the financial year. In support of his contentions, the Departmental Representative places reliance on the decision of this Tribunal in the case of ACIT Vs. Aftek Infosys Ltd. [(2011) TIOL 399-ITAT-Mum],, a copy of which is placed on record. 14. Heard both sides. Perused orders of lower authorities and the decisions relied on. Admittedly assessee received sale proceeds to the exten....
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....to Rs. 84.87 lakhs and Rs. 1,23,048/- respectively as income from business. On appeal, the Commissioner of Income Tax (Appeals) sustained the computation made by the Assessing Officer in excluding interest received on delayed payments from debtors and creditors no longer payable written back holding that these receipts are not part of business income directly attributable to exports of goods outside India relying on the decision of the Hon'ble Madras High Court in the case of India Comnet International Vs. ITO (185 Taxman 51). 16. Counsel for the assessee reiterating the submissions made before the lower authorities submits that the interest was collected from the debtors for delayed payment of sale proceeds and therefore such interest....
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....ould however be directly relatable to the business of the assessee of forgings. If the purchasers of the forgings did not make the payments of the forgings and then agree to pay the interest on the delayed payments, the said interest would have its direct nexsus with the business of forgings. The true test would be whether such interest would be available to the assessee otherwise also. The answer to the question would be certainly in negative. The interest being directly relatable only to the amounts receivable by the are during the course of its business on account of the sale of forgings this interest would have to be included as the profits and gains derived from the business of the assessee. We hold that this part of the interest would....