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2013 (10) TMI 1121 - AT - Income TaxComputation of deduction u/s 10A - deduction of communication and insurance charges from the export turnover without deducting them from total turnover while computing deduction u/s 10A of the Act – Held that:- Reliance has been placed upon the judgment of Hon'ble Bombay High court in case of Gemplus Jewellery India Ltd., [2010 (6) TMI 65 - BOMBAY HIGH COURT] - Directed the Assessing Officer to compute deduction u/s 10A of the Act by reducing the communication charges and insurance charges from export turnover as well as the total turnover. Amounts in dispute are in the nature of reimbursement, therefore to be excluded in the export turnover and total turnover for computation u/s 10A of the Income tax act – Held that:- When the Assessing Officer has not disputed that the amounts in dispute are in the nature of reimbursement, hence, should not form part of the export turnover for the purpose of computing deduction u/s 10A of the Act, then, the same cannot also form part of the total turnover for the said purpose - No profit element is embedded in the aforesaid amounts. Therefore, the direction of the CIT(A) to reduce the aforesaid amounts from the export turnover as well as total turnover while computing deduction u/s 10A of the Act is perfectly in order and requires no interference – Decided against the assessee.
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