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TMI Blog2017 (9) TMI 1889X X X X Extracts X X X X X X X X Extracts X X X X ..... riviera Home Furnishing [ 2015 (11) TMI 1139 - DELHI HIGH COURT ] this Tribunal is of the considered opinion that the assessee is eligible for deduction under Section 10B of the Act. The management fee for the assessment years 2009-10 and 2010-11 respectively are eligible for deduction under Section 10B of the Act. Therefore, we are unable to uphold the orders of the lower authorities. Accordingly, the orders of both the authorities below are set aside and the Assessing Officer is directed to allow the claim of the assessee in respect of management fee under Section 10B - Appeals filed by the assessee are allowed. - Shri N.R.S. Ganesan, Judicial Member And Shri S. Jayaraman, Accountant Member Appellant by: Shri G. Baskar, Advocate Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the undertaking is eligible for deduction under Section 10B of the Act. According to the Ld. counsel, the interest on the fixed deposit receipt has to be treated as profit of the undertaking, therefore, the assessee is eligible for deduction under Section 10B of the Act. The Ld.counsel has also placed his reliance on the judgment of Karnataka High Court in CIT v. Motorola India Electronics (P) Ltd. (2014) 265 CTR 94 and also the judgment of Delhi High Court in Priviera Home Furnishing v. Addl. CIT (2016) 138 DTR 149. 3. The Ld.counsel for the assessee further submitted that the Assessing Officer has also reopened assessments for both the assessment years under Section 147 of the Act. The assessments were completed under Section 143(3) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial available on record. The only issue arises for consideration is whether the assessee is eligible for deduction under Section 10B of the Act in respect of management fee or not? Both the authorities below have rejected the claim of the assessee by placing reliance on the judgment of Apex Court in Sterling Foods (supra) and Pandian Chemicals Ltd. (supra). The assessee claimed that it being 100% Export Oriented Unit, the profit has to be computed as provided in Section 10B(4) of the Act. Therefore, the management fee, which is in relation to export of valves, cannot be reduced from profit of the undertaking. The contention of the assessee is that the management fee is part of export profit, therefore, eligible for deduction under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Delhi High Court in Priviera Home Furnishing (supra), this Tribunal is of the considered opinion that the assessee is eligible for deduction under Section 10B of the Act. In other words, the management fee of ₹ 56,52,503/- and ₹ 56,13,961/- for the assessment years 2009-10 and 2010-11 respectively are eligible for deduction under Section 10B of the Act. Therefore, we are unable to uphold the orders of the lower authorities. Accordingly, the orders of both the authorities below are set aside and the Assessing Officer is directed to allow the claim of the assessee in respect of management fee under Section 10B of the Act. 8. In the result, both the appeals filed by the assessee are allowed. Order pronounced on 20th September, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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