2019 (5) TMI 288

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....s. 19,95,900. Of-course, the assessee has made an alternative claim through an additional ground raised subsequently, which will be dealt with at a later stage. 3. Insofar as the main grounds are concerned, brief facts are, the assessee is engaged in the business of manufacture and export of studded jewellery. For this purpose, the assessee has set-up an industrial undertaking in a Special Economic Zone (SEZ) and is eligible for claiming deduction under section 10AA of the Act. For the assessment year under dispute, the assessee filed its return of income on 27th September 2008, declaring total income of Rs. 9,64,138, after claiming deduction under section 10AA of the Act. In the course of assessment proceedings, the Assessing Officer wh....

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....d by the assessee should be reduced from written down value of the block of asset is erroneous, since, the assets against which insurance claim was received was neither sold nor discarded or demolished or destroyed during the previous year. He submitted, the fixed assets in respect of which the insurance claim was received were repaired and used in the business. Drawing our attention to section 10AA(7) of the Act, he submitted, insurance claim received by the assessee since is integrally connected to the business activity of the assessee, it should be considered as profit of business. In support of his contention, the learned Authorised Representative relied upon the following decisions:- i) CIT v/s Hewlett Packard Global Soft L....