9911796707
TMI Blog2023 (2) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Duty Entitlement Passbook Scheme ( DEPB ) is a cash assistance covered under clause (iiib) of section 28 of the Act and both Advance Import License and DEPB License have common features as both provide the benefit of duty drawback. The only difference between the two is that the Advance Import License is not transferrable whereas DEPB License is transferrable. Export incentive is not a part of the profits of the business u/s 80HHC (1), but it is entitled for the benefit of the proviso to section 80HHC(3) - AO is directed to grant the benefit of the proviso to sec 80HHC(3) in respect of export benefit. Disallowance of expenditure incurred under voluntary retirement scheme - HELD THAT:- As issues concerning the benefit of enduring nature and income-yielding asset have been adequately dealt with by the Supreme Court and by the jurisdictional High Court in its judgment in the case of Bhor Industries. Respectfully following the decision of the Bombay High Court in the case of CIT v. Bhor Industries Ltd [ 2003 (2) TMI 20 - BOMBAY HIGH COURT] and in view of a favourable decision in appellant's own case by the ITAT, Mumbai for A.Ys 1984-85 and 1985-86 direct the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Voluntary Retirement Scheme without appreciating the fact that the expenditure incurred was capital in nature. The Appellant prays that the Order of the CIT(A), on the above ground be set aside and that of the A.O. be restored. The Appellant craves leave to amend or alter any ground or add a new ground that may be necessary. 2. The brief facts of the case are that the assessee company is engaged in the business of manufacture of pharmaceuticals, bulk drugs and chemicals. The asssessee has filed the return of income for the A.Y 1999-2000 on 31.12.1999 disclosing a total income of Rs. 42,80,90,920/-, subsequently the case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act was issued. In compliance the Ld. AR of the assessee appeared from time to time and submitted the details. Whereas the AO on perusal of the financial statements and the various information furnished dealt on facts, law and made following disallowances and computed the total income. i. payments to club 49,596/- ii. Expenses attributable to dividend 1,11,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account. The purchases thus reduced have obviously increased the prof it. Therefore, a further addition of the unutilized amount will tantamount to double addition. The Assessing Officer is therefore not justified in making the said addition. Accordingly, the issue was decided in favour of the Respondent. 6. On the Second disputed issue with respect to non grant of benefit of provisions of Sec. 80HHC in respect of advance import license by holding the same was covered under clause (iiib) of Sec. 28 of the Act. The Ld. AR relied on the decision in the assessee own case for the A.Y 1996-97, [2007] 108 TTJ 889 (Mum). We consider it appropriate to refer to the observations of the CIT(A) at page 16 Para 13.1 as under: .The value of Advance Import License amounting to INR 1,23,80,893 is an export incentive within the meaning of clause 28(iiib) of section 28 of the Act. This is owing to the reason that Duty Entitlement Passbook Scheme ( DEPB ) is a cash assistance covered under clause (iiib) of section 28 of the Act and both Advance Import License and DEPB License have common features as both provide the benefit of duty drawback. The only difference between the two is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uphold the same and dismiss the grounds of appeal of the revenue. ITA No. 2285/Mum/2007, A.Y 2003-04 9. The revenue has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in allowing an adhoc amount of Rs. 1,01,13,318/- being 20% of expenditure of Rs. 5,05, 66, 589/- incurred on advertisement as capital expenditure. 2. On the facts and in the circumstances of the case. and in law, the Ld. CIT (A) erred in directing the AO to exclude the excise duty and sales tax from the total turnover while computing deduction u/s 80HHC. 3. On the facts and in the circumstances of the case directing and in law, the Ld. CIT (A) erred in directing to give benefit of proviso to 80HHC to advance licence benefit as covered u/s 28 (iii) (b). 4. The appellant prays that the order of CIT (A) on the above grounds be set aside and that of the AO restored. The appellant craves leave to amend or alter any ground or add a new ground that may be necessary. 10. We heard the rival submissions and perused the material on record. On the first ground of appeal the Ld. DR submitted that the CIT(A) erred in all ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
