TaxTMI 
TaxTMI 
2015 (4) TMI 1310
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....sidering following Income as Income from other sources and holding that these income are not entitled to be treated as Income from business for computing deduction u/s. 10A. 1. Bank Interest Rs. 1,21,299 2. Job Work Charges Rs. 73,762 3. Exchange difference Rs. 37,95,975 on loans Alternatively (i) Reasonable expenses related to job work charges be allowed on estimate basis and the amount so allowed. be reduced from total expenses and deduction u/s. 10A be revised accordingly. (ii) Exchange difference on loans be netted against related interest and other expenses. 2. The learned Assessing Officer has erred in making addition of Rs. 8,36,437/- being interest calculated @ 18% on credit period to AE beyond 180 days....
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....cision of Ld. CIT(A) granting the netting benefit to the assessee the Tribunal upheld the order of Ld. CIT(A). 2.1.2 In the present case Ld. CIT(A) has not granted even the benefit of netting, therefore, respectfully following the earlier decision of the Tribunal we hold that AO should grant netting benefit to the assessee as per decision of Hon'ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd. (supra). 2.2 Regarding job work charges, the matter was restored back to the file of AO with the following directions: "8. Following the decision of Hon'ble High Court, we direct the AO to redo the assessment by considering only the net receipt in respect of job work. The expenditure in this respect has to be worked out on t....
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....ify the exact details of the foreign exchange gain in respect of two kinds of loan and then allow the claim of the assessee with respect to the working capital loan. 13. In the result appeal of the assessee is partly Respectfully following the aforementioned observations of the Tribunal in assessee's own case we restore this issue also to the file of AO with similar directions. 2.4 Ground No.1 is partly allowed in the manner aforesaid. 3. Apropos Ground No.2, TP adjustment of Rs. 8,36,437/- was made on account of delayed payments received for export proceeds from Associated Enterprise(AE) of the assessee. According to TPO, period of 180 days could be allowed as reasonable and beyond the said period export realization cannot be cons....
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....t in the shape of import payments to be made to its AE and these are listed at page 133 of the paper book. It was submitted that assessee did not make payment even for a period, more than exceeding 1000 days. It may be mentioned here that on page- 133 of the paper book the assessee has given details regarding "working of interest on delay in import payments". Those payments in excess of 180 days are listed as against impugned interest of Rs. 8,36,437/- worked out on delay in export realization, interest on delay in import payments have been worked out at Rs. 1,10,01,043/-. Thus, it is the case of Ld. AR that when assessee is not making the payment for delay which is much more than 180 days, then how assessee's transaction for receiving dela....