2015 (10) TMI 1629

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....scrap sales of Rs. 37,60,588/-, respectively, in proceedings under section 143(3) of the Act. 2. The Revenue reiterate its pleading on all these issues in the course of hearing. The Assessee strongly supports the CIT (A) order under challenge. 3. The Revenue's first ground relates to an amount of Rs. 2,38,164/-arisen from exchange rate difference. The Assessing Officer treated this sum as speculation profits earned on account of purchase of forward contract exchange rate fluctuation benefit. He treated the same as having no connection with the assessee's export business. The CIT (A) has reversed the said finding by quoting decision of the hon'ble Mumbai high court in CIT v/s. Rachana Udyog (Bom.) ITA No.2394 of 2009 dated 13-0....

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..... Hukumchand Mohanalal 82 ITR 64, he observed that it is only because the fiction credit by section 41(1) of the Act. it is a deemed income. Therefore, the said receipt is treated as income but the same can not be treated as income derived' from industrial undertaking and therefore, the same is not eligible for deduction u/s. 80IB of the Act. He also referred to the decision of the DCIT v/s. Mira Industries 87 ITD 475. The AR of the appellant contended that it is an undisputed fact that when such an amount is earlier debited to the profit and loss account, the benefit u/s. 80IB must have gone down in those years and year in which, the same is written back, the benefit u/s.80IB may not be deprived of as the same expenditure/liability has....