2018 (6) TMI 51

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....ection 143(3) of the Income-tax Act, 1961 (in short "the Act"). 2. In this appeal, although the assessee has raised multiple grounds of appeal but the solitary dispute is with regard to the denial of claim of deduction under section 10B of the Act with regard to the following components of income :  Sub-head of income Amount (Rs.) Duty drawback 9,65,956 Exchange rate fluctuation 33,25,011 Sales tax refund 5,85,340 Other income 2,77,382   51,53,689   3. Briefly put, the relevant facts are that the appellant is a proprietor of a concern, M/s. Raj Chemicals which is engaged in the manufacture and export of basic drugs, fine chemicals, intermediaries, etc. In the return of income, the ....

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....undertaking, the same would be eligible for the claim of deduction under section 10B of the Act. To the similar effect is the judgment of the hon'ble Delhi High Court in the case of Riviera Home Furnishing v. Addl. CIT I. T. A. No. 459 of 2015 dated November 19, 2015- [2017] 9 ITR-OL 401 (Delhi). In this context, reliance has also been placed on the decision of the Mumbai Bench of the Tribunal in the case of Krupa Trading Company v. Addl. CIT [2017] 77 taxmann.com 177 (Mumbai-Trib.). 5. On the other hand, the learned Departmental representative appearing for the Revenue has reiterated the stand of the lower authorities, which we have already noted in the earlier paragraphs and is not being repeated for the sake of brevity. 6. We h....

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....ee, the same cannot be excluded from the eligible profits for the purpose of computing deduction under section 10B of the Act. As per the computation made by the Assessing Officer himself, there is no dispute that both these incomes have been treated by the Assessing Officer as business income. . . ." 7. The aforesaid decision clearly militates against the action of the Assessing Officer inasmuch once he accepts the aforesaid three elements of income as forming part of the "business income" of the assessee's eligible undertaking, the same cannot be excluded for the purpose of computing deduction under section 10B of the Act. Similarly, the hon'ble Delhi High Court has also affirmed a similar ratio in the case of Riviera Home Furn....