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TMI Blog2010 (1) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... e this matter back to the file of the Assessing Officer for a fresh decision in the light of the decision of Special Bench of the Tribunal rendered in the case of Topman Exports Disallowance of the claim of the assessee u/s 80HHC on the Export sale - If the Assessing Officer finds that this RBI Master Circular is applicable in the present case and the export proceeds were realized as per this RBI Master circular, then such export proceeds should not be reduced from export turnover for the purpose of computation of deduction allowable to the assessee u/s 80HHC, matter remanded for fresh consideration. Netting the interest received and paid by the assessee - assessee has earned interest income - Assessing Officer has excluded the same from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence ground No.3 is rejected as not pressed. 4. Regarding ground No.1, it was submitted by the Ld AR of the assessee that this issue has to be restored back to the file of the Assessing Officer for a fresh decision as per the decision of the Special Bench of the Tribunal rendered in the case of Topman Exports as reported in318 (AT) 87(SB). Regarding ground No.2, it was submitted that this issue should also go back to the file of the Assessing Officer for a fresh decision in the light of RBI Master Circular - Export of Goods and Services dated July I, 2005 as per which a period of 360 days is allowed for realization of sale proceeds of export in case of status holder exporter. It was his submission that the assessee is a status hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds is higher than the face value, such excess is profit on sale of DEPB. We, therefore, set aside the order of the Ld CIT(A) on this issue and restore this matter back to the file of the Assessing Officer for a fresh decision in the light of the decision of Special Bench of the Tribunal rendered in the case of Topman Exports (supra). Ground No.1 is allowed for statistical purposes. 7. Regarding ground No.2, we feel that RBI Master Circular-Export of Goods and Service dated July Ist, 2005 was cited before Ld CIT(A) but no clear finding is given by Ld CIT(A) regarding applicability of this circular in the present case. It is held by Ld CIT(A) that no general circular can over ride specific provision of section 80HHC. We feel that Ld C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order that the assessee has earned interest income of Rs.24.27.402/-. The Assessing Officer has excluded the same from business profit and taxed the same under the head income from other sources. Before Ld CIT(A), it was the claim of the assessee that interest paid should be reduced from interest received and only net interest income has to be assessed as income from other sources. This issue was considered and decided by Hon'ble Delhi High Court in the case of Shriram Honda Power Equipment Ltd. 289 ITR 475 (Del.). We are in agreement with Ld AR of the assessee that this issue should also go back to the file of the Assessing Officer for a fresh decision regarding this claim for netting of interest and hence we set aside the order of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers cannot be ruled out. He made disallowance of 1/8th of these expenses amounting to Rs.67,446/-. Similarly, out of telephone expenses of Rs.4,79,353/- also, 1/8th disallowance was made on account of un-deniable personal use in addition to this, out of the expenses claimed by the assessee of Rs.8,05,344/- under the head travel expenses, the Assessing Officer made disallowance of lump sum amount of Rs.30,000/- on the basis that non business and personal expenses cannot be ruled out. This disallowance was made by the Assessing Officer for the reason that he had asked the assessee submit copies of all the bills in support of traveling expenses but the assessee could not submit all supporting bills in respect of the expenses incurred specifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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