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2014 (8) TMI 525 - AT - Income TaxInclusion of duty drawback in export sale – Deduction u/s 10B – Held that:- Section 10B was introduced by the Finance Act, 1988 w.e.f 1.4.1989 - As stated in Circular No. 528 dated 16.12.1988, tax holiday u/s 10A was not available to 100% EOU and thus, undertakings were eligible only for deduction u/s 80HHC out of their export profit - section 10B was inserted to ensure that income of 100% EOU shall be exempted from tax for a period of 5 consecutive AYs - Duty drawback is an incentive - the assessee is allowed to realize and repatriate full value of export proceeds within a period of 12 months from the date of export - the assessee received a sum of ₹ 14,31,796/- out of ₹ 31,84,755/- within one year from the date of exports, thus, the deduction relating to the amount of ₹ 14,31,796/- cannot be disallowed - The amount of Duty drawback either is to be included in both total turnover as well as export turnover or to be excluded from both - If the figures of export turnover and total turnover are analyze the deduction u/s 10B would come to ₹ 1,18,56,646 – thus, there was no infirmity in the conclusion drawn by the CIT(A) – Decided against Revenue.
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