2012 (1) TMI 292 - AT - Income Tax

Summary

Issues Involved:
Computation of deduction u/s 80HHC of the Act, Addition relating to suppressed stock and turnover, Addition made u/s 43B of the Act, Deduction u/s 80HHC on DEPB receipts.

Computation of Deduction u/s 80HHC of the Act:
The assessee, engaged in cashew processing and exporting, claimed deduction u/s 80HHC on export profit. Dispute arose over indirect costs for trading goods. Assessing officer's adjustment was contested based on consistent past practices and legal precedents. Tribunal directed re-examination considering expenses exclusively for processed exports.

Addition on Account of Suppressed Stock and Turnover:
Ld CIT(A) enhanced addition for suppressed stock and turnover. Delay in furnishing explanations led to finalization without considering the assessee's submissions. Tribunal ordered re-examination by Ld CIT(A) to ensure natural justice.

Disallowance of Employer's Contribution of PF/ESI u/s 43B:
Assessee contended timely payment before return filing date based on legal rulings. Tribunal directed assessing officer to verify payment dates and decide afresh in line with Supreme Court decisions.

Eligibility of Deduction u/s 80HHC on DEPB Receipts:
Assessee sought admission of this ground as a legal issue without fresh facts. Tribunal admitted the ground for examination in light of relevant legal decisions and remanded the issue for fresh assessment.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing re-examination and adherence to legal principles in resolving the issues raised.