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TMI Blog2019 (1) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee after due verification and also after duly appreciating the fact that similar income/s had been held to be includible in eligible profits in the preceding assessment years. Appeal of the assessee stands allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... peal wherein it was held that the Foreign exchange fluctuation gain was profit derived from the undertaking. However Miscellaneous Income and compensation were held to be not derived from the undertaking. 2.2 The Assessee challenged the order dated 01.10.2010 passed by the Ld. CIT(A) before the Income Tax Appellate Tribunal, New Delhi and the Tribunal held that the compensation of ₹ 5,31,107.41 and ₹ 7,300/- out of ₹ 62,363/- of the miscellaneous income was not derived from the undertaking. 2.3 Thereafter, the assessee filed a rectification application u/s 254(2) of the Act being Miscellaneous Application No. 181/Del/2016 in I.T.A. No. 5793/Del/2010 before the Tribunal seeking rectification of mistakes apparent on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the AO had himself accepted that miscellaneous income and compensation income was profit derived from the undertaking as no disallowance was made. It was also submitted that miscellaneous income and compensation income have been treated as business income and, as such, in accordance with subsection (4) of section 10B of the Act, both the aforesaid items of income should be profits derived from the export, as the assessee had not made any domestic sales and all the sales of the assessee was export sales. In respect of compensation income, it was submitted that same had direct nexus with the profits of the assessee as compensation income was unclaimed salary/leave with wages, which was originally debited while computing the income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for allowing the claim of the assessee after due verification. 6.0 Having heard both the parties and in view of the undisputed fact that the Revenue had accepted miscellaneous income and compensation as part of the eligible profits for the purpose of computation of claim u/s 10B of the Act coupled with the concurrence of both the parties for the issue being restored to the file of the AO for verification, we restore the issue to the file of the AO with a direction to allow the claim of the assessee after due verification and also after duly appreciating the fact that similar income/s had been held to be includible in eligible profits in the preceding assessment years. 7.0 In the final result, the appeal of the assessee stands allowed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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