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2011 (4) TMI 1022 - AT - Income TaxExclusion of the payment made for import from the export for the purpose of computation of deduction u/s 10A - netting of export is permissible as per the RBI circular, there should not be any reduction of such amount while calculating the export turnover. He has further contended that the assessee has utilized the export proceedings for import of goods which is used for the export business of the assessee, therefore, this expenditure cannot be considered as sale proceed not brought into India - in the case of J. B. Boda & Co. (P.) Ltd. (1996 - TMI - 40198 - SUPREME Court) - assessee's appeal is allowed Reduction in expenditure incurred in foreign currency while calculating the export turnover - AO has not given the findings that the other expenditure in foreign currency are for providing the technical services outside India, therefore, the same cannot be excluded as per the meaning of export turnover provided under Explanation (2)(IV) - expenditure other than freight and insurance not incurred for technical services outside India cannot be excluded while calculating export turnover Interest earned on deposits as income from other sources - in the case of CIT v. Menon Impex (P.) Ltd. (2002 - TMI - 12192 - MADRAS High Court) Held that the interest received by the assessee was on deposits made by it in the banks, It was the deposit which was the source of the interest income. The mere fact that the deposit was made for the purpose of obtaining letters of credit which were in turn used for the purpose of the business of the industrial undertaking did not establish a direct nexus between the interest and the industrial undertaking and, therefore, the assessee was not entitled to get the benefit of section 10A in relation to the interest, appeal of the assessee is partly allowed
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