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2011 (1) TMI 1114 - HC - Income TaxDeduction u/s 80HHE - deduction of the profit earned from the export of computer software - Held that:- Supreme Court in K.RAVINDRANATHAN NAIR'S CASE [2007 (11) TMI 10 - Supreme Court of India] applies to consultancy charges received in India which is unrelated to the business of export of computer software and so much so, 90% of the income by way of consultancy charges received in India should be excluded under Explanation (d) to Section 80HHE in the computation of eligible deduction under the Act - Decided against the assessee Validity of Reopnening - Held that:- While working out the eligible deduction did not exclude 90% of the income received by way of consultancy charges which is to be specifically excluded by virtue of mandatory provision contained in Explanation (d) of Section 80HHE. In fact, since there is an omission to apply the statutory provision in the working out of eligible deduction of profit on export of software, the assessment could even be rectified through rectification proceedings under Section 154. In any case when the mandatory provision is not followed leading to evasion of tax by way of excess relief granted to the assessee, the remedy open to the officer is to revise the assessment by invoking powers under Section 147 - Decided against assessee
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