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2015 (10) TMI 410 - AT - Income TaxInterest income and entitlement of benefit u/s. 10A - Held that:- It is clear from the finding of CIT(A) that the AO was directed to consider the netting of expenses in view of the decisions of Hon'ble Supreme Court in the case of ACG Associated Capsules vs. CIT (2012 (2) TMI 101 - SUPREME COURT OF INDIA) Adjustments to be made for calculating deduction us/ 10A - Held that:- We find that the FAA had given specific direction about un realised the export sale proceeds. In our opinion,his order does not suffer from any legal infirmity. If the AO has not made verification till date,he should verify as to whether the sale proceeds were realised by the assessee within the stipulated time or not. - Decided in favour of assessee for statistical purposes. Non reducing freight on export from total turnover for calculating deduction u/s.10A - Held that:- The profits of the business of the undertaking are multiplied by the export turnover in respect of the articles, things or, as the case may be, computer software and divided by the total turnover of the business carried on by the undertaking. The expression “total turnover” has not been defined at all by Parliament for the purposes of section 10A . However, the expression “export turnover” has been defined. The definition of “export turnover” excludes freight and insurance. Since export turnover has been defined by Parliament and there is a specific exclusion of freight and insurance, the expression “export turnover” cannot have a different meaning when it forms a constituent part of the total turnover for the purposes of the application of the formula. A construction of a statutory provision which would lead to an absurdity must be avoided. Moreover, a receipt such as freight and insurance which does not have any element of profit cannot be included in the total turnover. Freight and insurance do not have an element of turnover. For this reason in addition, these two items would have to be excluded from the total turnover particularly in the absence of a legislative prescription to the contrary. - Decided in favour of assessee. Addition being the expenses incurred for increase in the share capital - Held that:- The issue is to be decided against the assessee in the light of the decision delivered by the Hon'ble Supreme Court in the case of Broke Bond India (1997 (2) TMI 11 - SUPREME Court ). Decided against the assessee
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