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2014 (1) TMI 1538 - HC - Income TaxWhether the turnover of the undertaking eligible for deduction under Section 10A be included in the total turnover for deductions u/s 80HHE - Held that:- As per section 80HHE(3) - In order to determine the profits derived from the export of computer software the amount shall be the amount which bears to the profits of the business, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee - The total turnover of the business referred to under Sub-Section(3) cannot be construed as the total turnover of the business carried on by the assessee - The total turnover refers only to the business carried on under Section 80HHE namely the business of software - Neither the profits of Section 10A units nor the turnover of 10A units could be added to find out the profit from export of computer software under Section 80HHE. Once the assessee has been given the benefit of total exemption from payment of tax under Section 10A in respect of these two units to which Section 10A is attracted, neither the profit and gains of that business nor the turnover of that business could be added to the business of which Section 10A is not applicable - The third unit of the assessee is eligible for deduction in respect of export turnover of computer software under Section 80HHE – While computing the profits of the said unit, the turnover of other 10A units cannot be added to arrive at the total turnover of the business as stipulated under Sub14 Section (3) of Section 80HHE – Decided against Revenue.
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