The Tax Publishers2020 TaxPub(DT) 5450 (Bang-Trib)

INCOME TAX ACT, 1961

Section 10A

To arrive at amount deductible under section 10A what is excluded from 'export turnover' must also be excluded from total turnover', since one of the components of 'total turnover' is export turnover.

Deduction under section 10A - Computation of total turnover - Treatment of expenses excluded from export turnover -

Assessee claimed deduction under section 10A. AO re-computed amount deductible after excluding communication expenses from export turnover, however, without reducing the same from total furnover. Held: To arrive at amount deductible under section 10A what is excluded from 'export turnover' must also be excluded from total turnover', since one of the components of 'total turnover' is export turnover.

Followed:CIT v. Tata Elxsi Ltd. (2012) 349 ITR 98 (Karn-HC) : 2011 TaxPub(DT) 1960 (Karn-HC) and CIT v. HCL Technologies Ltd. (2018) 93 Taxmann.com 33 (SC) : 2018 TaxPub(DT) 2138 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12


INCOME TAX ACT, 1961

Section 37(1)

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