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2015 (2) TMI 367 - HC - Income TaxClaim of deduction u/s 80HH, 80HHC and 80I - inclusion of unused and left over IDEB v/s notional figure in the turnover - ITAT allowed the claim of assessee to include only unused amount - Held that:- From the figure representing IDEB, the figure representing the actual availment of the import duty exemption must be deducted and it is only the remainder that would qualify for addition to the total turnover. Revenue is not able to convince us as to how the notional figure of IDEB in its entirety can be added to the export turnover. We have already extracted Clause (b) of explanation to Section 80HHC of the Act, which defines export turnover. It represents nothing more than the actual sale proceeds of exported goods. By no stretch of imagination, the incentives of duty exemption on imported goods can be treated as sale consideration for export goods much less can it become part of the export turnover. Once it cannot be added to the export turnover, the only possibility is to add it to the total turnover. There again, the proviso would govern the situation and amounts mentioned in the proviso cannot be added to the total turnover for the purpose of Section 80HHC. The IDEB partakes the character of the amounts covered by Clause (iii) of Section 28 of the Act. By operation of proviso to Clause (ba) of Explanation to Section 80HHC of the Act, it gets excluded from the total turnover.Tribunal has correctly taken the view that the balance of the unused IDEB can be added to the total turnover. - Decided in favour of assessee.
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