9911796707
TMI Blog2022 (5) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 2. At the outset, we note that appeal in ITA no.2446/Ahd/2007 for assessment year 2004-05 was filed by the Revenue before the Tribunal, which was adjudicated by this Tribunal, vide order dated 28.06.2018. While adjudicating the Revenue`s appeal, in ITA no.2446/Ahd/2007, the Tribunal committed certain factual errors, therefore, assessee filed Miscellaneous Application (in short "MA"), vide MA No.44/SRT/2018 dated 07.06.2021. The Tribunal has recalled the said order for two issues. First issue, for which the order of the Tribunal was recalled, reads as follows: "4. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Apart from this, the Tribunal has not considered the decision of the Coordinate Bench in assessee's own case for AY.2002-03. We note that since, there was adjudication on a different issue which was not the ground of appeal by the Revenue, hence for limited purpose, the order of the Tribunal is recalled to adjudicate ground no.7 hence the Registry is directed to fix the appeal in due course." 5. Learned Counsel pleads that a part of ground no.7 raised by the Revenue has been adjudicated on different footing by the Tribunal, therefore to adjudicate the remaining part of ground no.7 in respect of written back provision, to the tune of 22,70,062/- ( Rs. 33,97,072 -Rs.11,27,010), the order of the Tribunal was recalled. The ld Counsel argued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance from customers Rs.72,690/- Total Rs.33,97,072/- Less: rent Received from Bajaj Alliance Rs.11,27,010/- The amount sustained by Ld CIT(A) 22,70,062/- The assessee argued before assessing officer that all the above credits written back have direct nexus with the manufacturing business. However, assessing officer held that aforesaid amount has no nexus with business of assessee hence excluded the same from profit of the business for the purpose of granting deduction under section 80HHC of the Act. On appeal by assessee, the Ld. CIT(A) had directed the assessing officer not to include any of the items except rent from Bajaj Alliance Rs.11,27,010/- for the purpose of granting deduction under section 80HHC of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profits of the business. However, in respect of provisions written back, the same cannot be considered of the nature like miscellaneous income or inter-connected with the business of the exports. Earlier when the assessee anticipated certain expenditure, the same were debited to profit and loss account and claimed as business expenditure. The provision no longer require merely reduces the expenditure and is not a receipt or income simpliciter. Such provision written back merely reduces the expenditure claimed and hence, cannot be excluded while computing profits of the business under clause (baa) of Explanation to section 80HHC. We, therefore, direct the Assessing Officer not to exclude 90 per cent of the provision written back for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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