WDV of assets cannot be adjusted by amount of compensation for defective product

DCIT Vs Echjay Industries Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that amount of compensation for defective product being capital in nature cannot be adjusted from WDV of the assets. Facts- Assessee Company is engaged into the business of manufacturing engineering products & exports. Case of the assessee originally assessed u/s. 143(3) of the Act, determining total income at Rs. 14,77,02,280/- against the returned income of Rs. 12,74,92,260/-. Against this order assessee preferred an appeal before the Ld. CIT (A) and in its first-round; matter has already travelled up to ITAT. Coordinate ...