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2015 (1) TMI 1305 - AT - Income TaxComputation of the deduction u/s 80 HHC - non-inclusion of sum being foreign exchange fluctuations as part of export turnover - Held that - Having considered the above contentions we find force in the same in as much as that foreign exchange fluctuations on realisation of export-bills forms part of export turn-over in terms of the judgement of the Apex court in Wood Ward Governor India (P) Ltd. (2009 (4) TMI 4 - SUPREME COURT ). We have gone through the trading account of the export divisions furnished by the assessee which clearly shows that such foreign exchange fluctuation pertained to the export-sales of Rs. 26, 48, 59, 379/- adopted by the AO. Thus the AO is directed to make the necessary rectification by including the sum of Rs. 30, 01, 318/- as a part of export turn-over. The said ground is thus allowed. Not allowing to reduce the indirect cost equivalent to 10% of export incentives and interest - Held that - In termsin the case of Hero Exports Vs. CIT (2007 (11) TMI 13 - Supreme Court of India ) the claim made by the assessee is no longer a debatable issue. In view thereof the AO is directed to make the necessary rectification in computation of the claim of deduction u/s 80(HHC) of the Act by reducing the indirect cost by a sum of Rs. 37, 03, 362/- being 10% of the export incentives and interest income. Loss in trading should be adjusted following the judgment of Apex Court in IPCA Laboratories reported in (2004 (3) TMI 9 - SUPREME Court ). Hence the said ground is rejected. The entire value taken by the A.O. as export incentive for the computation of deduction u/s 80HHC is not correct as per the law Accordingly the A.O. is directed to examine the actual import incentive received by the assessee and the same may he considered for the purpose of arriving deduction u/s 80HHC
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