2017 (2) TMI 504

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.... written back Rs.7, 59,417/- Miscellaneous receipts (Sale of Scrap) Rs.5, 05,375/- Sundry balances written back Rs. 70,249/- Profit on sale of assets Rs. 23,315/-   3. The assessee in the present case is a Company, which is engaged in the business of export of leather Hand Gloves, silk fabrics and made- ups, manufacture of yarns and 100% natural silk fabrics. The return of income for the year under consideration was filed by it on 30. 11. 2006 declaring total income at 'nil' after claiming exemption under section 10B. During the course of assessment proceedings, the claim of the assessee for exemption under section 10B was examined by the Assessing Officer and on such examination, he disallowed the claim of the assessee fo....

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.... is squarely applicable in the present case and since the receipts or income on account of provision for bad and doubtful debts written back, excess provision written back, sale of scrap and sundry balances written back clearly formed part of the business income of the assessee, I am of the view that the same should be taken into consideration while computing the profit of the assessee eligible for deduction under section 10B, I accordingly direct the Assessing Officer to recall the deduction under section 10B after taking into consideration the said receipts and partly allow Ground No. 1 of the assessee's appeal. 5. The issue involved in Ground No. 2 relates to the disallowance of Rs. 8, 92,230/- made by the Assessing Officer and confirme....