2022 (4) TMI 167

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....filed its return of income on 28.09.2009 declaring total income of Rs. 5,22,350/- and book profit of Rs. 81,10,159/-. It had claimed deduction u/s. 80IC amounting to Rs. 76,27,247/-. 2.1 During the course of assessment proceedings the AO noted that the assessee has claimed deduction u/s. 80 IC of the IT Act which is the 5th year of its claim. From the various details furnished by the assessee he noted that the assessee has claimed deduction u/s. 80IC in respect of the following indirect income :- AMC & Repair charges Rs. 1,04,49,805/- Duty draw back Rs. 3,03,313/- Interest on FDR Rs. 35,30,000/- Job Work (Income) Rs. 4,81,104/- 3. According to the AO in view of various decisions the income shown as AMC & repair....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing to Rs. 42,44,689/- rental expenses amounting to Rs. 9,66,500/- and after sale service amounting to Rs. 17,45,895/- is allowed proportionately from the above income. The total of above expenses comes to Rs.l,31,18,538/-. The expenses are allowed only on job work and AMC & Repair charges. The total of AMC & repair charges and job work comes to Rs. 1,39,79,805/-. By applying the ratio of AMC & repair charges and job work with sales the deduction on account of expenses to be allowed comes to Rs. 25,91,772/-. Thus the net income to be added on account of AMC & Repair charges and job work comes to Rs. 1,13,88,033/-. To this, income on account of Duty draw back Rs. 3,03,313/-, Misc. Income Rs. 4,81,104/-, Profit on sale of fixed assets Rs. 4,8....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duction. 4. On the facts and in the circumstances of the case and in law the CIT (Appeal) was incorrect and unjustified in holding that AMC and job work does not constitute the eligible business. 7. We have heard the rival arguments made by both the sides, perused the orders of the AO and the Ld. CIT(A) and the paper book filed on behalf of the assessee. We find identical issue had come up before the Tribunal in assessee's own case for the preceding and subsequent assessment years. We find the Tribunal vide ITA No.84 and 847 /Del/2017 order dated 21.03.2022 has decided the issue partially in favour of the assessee by observing as under :- 7. Coming to the common ground No. 1(b) [for assessment year 2011-12] and 1(c) [fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... AMC charges received by the assessee. In so far as the duty draw-back, interest on FDR, other interest are concerned, these incomes are not derived from business of the assessee. Hence, we hold that these incomes are not entitled for deduction under Section 80 IC of the Act." 8. Respectfully following the order of the Tribunal in assesee's own case for A.Y.2011-12 and 2012-13 cited (supra) we hold that the assessee is entitled to deduction u/s. 80 IC in respect of AMC charges. 9. So far as the other items are concerned i.e. duty draw back, interest on FDR and other interest, these incomes are not drived from business of the assessee as held by the Tribunal. Therefore, we hold that these incomes are not eligible for deduction u/s. 80 ....