TMI Blog2015 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... f adjusting interest under 244A of the Act - Held that:- As seen from the Form 26AS as well as the claims made by assessee in the return of income, assessee did claim TDS of ₹ 8,65,898 and advance tax of ₹ 1,89,00,000 totaling to ₹ 1,97,65,898. However, A.O. allowed amount of ₹ 1,73,51,992. Since the claim of assessee was also supported by Form 26AS maintained by department, we direct the A.O. to give credit accordingly and re-workout the tax computations.- Decided in favour of assessee. Interest adjustment under section 244A of the Act - Held that:- contention of assessee that no such interest was granted to assessee and therefore, adjustment of the same is not correct. This requires detailed verification by A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant and not accessing the internet. DRP, however, did not agree with that contention. Assessee made the alternate claim that once the expenditure is excluded from export turnover, it is to be excluded from total turnover as well, supported by various decisions of ITAT and also decision of Hon ble Bombay High Court in the case of Gem Plus Jewellery India Ltd., 330 ITR 175. DRP however, while accepting that decisions are in favour of assessee and since the matter is further contested, to keep the matters alive the A.O s action was upheld. Assessee is aggrieved and raised ground No.2 on the above issue. 3. We have heard the Ld. Counsel and Ld. D.R. This issue is covered by the Coordinate Bench decision in assessee s own case for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Section 8OHHC, the export profit is to be derived from the total business income of the assessee, whereas in Section lO-A, the export profit is to be derived from the total business of the undertaking. Even in the case of business of an undertaking, it may include export business and domestic business, in other words, export turnover and domestic turnover. The export turnover would be a component or part of a denominator, the other component being the domestic turnover. In other words, to the extent of export turnover, there would be a commonality between the numerator and the denominator of the formula. In view of the commonality, the understanding should also be the same. In other words if the export turnover in the numerato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed so. If they have not chosen to expressly define what the total turnover means, then when the total turnover includes export turnover, the meaning assigned by the legislature to the export turnover is to be respected and given effect to, while interpreting the total turnover which is inclusive of the export turnover. Therefore the formula for computation of the deduction under Section 10-A, would be as under : Profits of the business X Export turnover (Export turnover + domestic turnover total turnover) 11. In that view of the matter, we do not see any error committed by the Tribunal in following the judgments rendered in the context of Section BOHHC in interpreting Section 10-A when the principle underlying both these provisions is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusion has to be maintained. 8. Similarly, in the case of ITO vs. M/s. Sak Soft Limited reported in (2009) 20 DTR 514 Special Bench of the Tribunal has held that while computing the deduction u/s 10A or 10B of the Act, freight, telecom charges, insurance attributable to delivery of articles or things or computer software outside India or the expenses, if any, incurred in foreign exchange for providing technical services outside India are to be excluded from both export turnover and from the total turnover which are numerator or denominator in the formula. The ITAT Hyderabad Bench in case of Patni Telecom (P) Ltd vs. ITO reported in (2009) 120 ITD 105 also held similar view. Respectfully following the aforesaid decisions, we hold tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S indicating that the claims are supported by Form 26AS of the department. In respect of this, as A.O. has given less credit Assessee wants direction on this. 4.1. As seen from the Form 26AS as well as the claims made by assessee in the return of income, assessee did claim TDS of ₹ 8,65,898 and advance tax of ₹ 1,89,00,000 totaling to ₹ 1,97,65,898. However, A.O. allowed amount of ₹ 1,73,51,992. Since the claim of assessee was also supported by Form 26AS maintained by department, we direct the A.O. to give credit accordingly and re-workout the tax computations. 5. Ground No.4 pertains to issue of adjusting interest under section 244A of the Act. A.O. adjusted amount of ₹ 2,35,956 in arriving at the tax de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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