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TMI Blog2017 (2) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... computing profit eligible for deduction under section 10B by applying the mandatory formula given in sub-section 4. Thus the ratio laid down by the Coordinate Bench of this Tribunal is squarely applicable in the present case and since the receipts or income on account of provision for bad and doubtful debts written back, excess provision written back, sale of scrap and sundry balances written back clearly formed part of the business income of the assessee, it is of the view that the same should be taken into consideration while computing the profit of the assessee eligible for deduction under section 10B - Decided in favour of assessee. Disallowance on account of prior period expenses - Held that:- The prior period expenses claimed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax ( Appeals)-2, Kolkata dated 05.07. 2016. 2. The issue involved in Ground No. 1 relates to the disallowance of assessee s claim for exemption under section 10B in respect of the following incomes:- Provision for bad and doubtful debts written back Rs.5, 16,789/- Excess provision written back Rs.7, 59,417/- Miscellaneous receipts (Sale of Scrap) Rs.5, 05,375/- Sundry balances written back ₹ 70,249/- Profit on sale of assets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or consideration before the Bangalore Bench of this Tribunal in the case of ACIT vs.- Motorola India Electronics (P) Limited [ 114 ITD 387] and after taking into consideration the methodology provided in sub-section (4) for arriving at the export profits of the business of the Undertaking, it was held by the Tribunal that the entire profits derived from the business of Undertaking should be taken into consideration while computing profit eligible for deduction under section 10B by applying the mandatory formula given in sub-section 4. In my opinion, the ratio laid down by the Coordinate Bench of this Tribunal is squarely applicable in the present case and since the receipts or income on account of provision for bad and doubtful debts writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under consideration. 7. I have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that the prior period expenses of ₹ 8, 92,230/- claimed by the assessee in the year under consideration are disallowed by the Assessing Officer as well as by the ld. CIT( Appeals) as the assessee failed to establish on evidence that the same had crystallized during the year under consideration. Even at the time of hearing before me, the ld. counsel for the assessee has not been able to do so. I, therefore, find no justifiable reason to interfere with the impugned order of the ld. CIT( Appeals) confirming the disallowance made by the Assessing Officer on account of prior period expenses and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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