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TMI Blog2016 (6) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessee’s eligible profits derived from its manufacturing activities have seen increased since raw material costs have come down due to the impugned discount forming integral part of the manufacturing process. We conclude that the authorities below have wrongly equated these facts with those involved in hon’ble apex court decision in Liberty India vs. CIT (2009 (8) TMI 63 - SUPREME COURT ) involving DEPB sales figures. We accept assessee’s contentions on merits and reject those raised at Revenue’s behest supporting the impugned disallowance. X X X X Extracts X X X X X X X X Extracts X X X X ..... red in confirming the action of the Learned Assessing Officer in excluding other income of ₹ 3,00,295/- for the purpose of calculation of deduction U/s. 80IB of the Act. The action of the Learned Commissioner of Income Tax (Appeals) is contrary to the facts and circumstances of the case and law and deserves to be deleted." 3. Learned authorized representative states that the assessee does not press its former two grounds challenging validity of reopening. This leaves us with the remaining issue of section 80IB deduction disallowance of ₹ 3,00,295/- made by both the lower authorities thereby treating the same income from other sources. 4. Facts of the case are in a narrow compass. The assessee firm manufactures specialty chemic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of ledger accounts. It was submitted that the discounts received reduces the manufacturing cost of products sold and hence is directly derived from the industrial undertaking. As regards exclusion of exchange rate difference it was submitted that the issue is squarely covered in favor of the appellant in view of the decision of Gujarat High Court in the case of CIT V/s. Amba Impex reported in 282 ITR 0144. It was requested to direct the AO not to exclude the other income to the tune of ₹ 3,00,295/- while calculating deduction U/s. 80IB. DECISION:- I have carefully perused the facts of the case and the submission made by the appellant along with the observations made by the AO in the assessment order. The judicial rulings are v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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