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2018 (11) TMI 1640 - AT - Income TaxDeduction u/s 10A computation - exclude the expenditure incurred in foreign currency both from export turnover and total turnover for the purpose of deduction - HELD THAT:- Tribunal is that the appeal filed by the Revenue against the order of the Special Bench of this Tribunal in ITO v. Sak Soft Limited [2009 (3) TMI 243 - ITAT MADRAS-D] is pending before the High Court and it has not attained finality. This Tribunal is of the considered opinion that when the Special Bench of this Tribunal decided the matter, it is binding on all other Benches. It is not the case of the Revenue that the order of this Tribunal in Sak Soft Limited (supra) is stayed by the High Court. In those circumstances, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly followed the order of this Tribunal in the case of Sak Soft Limited (supra). The denominator and numerator should be of the same factor. Therefore, once it was taken as export turnover, it should be taken as total turnover also. In this case, the AO has taken the expenditure made in foreign currency as export turnover. However, the same was excluded from the total turnover. Therefore, this Tribunal is of the considered opinion that the CIT(A) has rightly directed the Assessing Officer to exclude the expenditure incurred in foreign currency both from export turnover and total turnover. Hence the order of the CIT(Appeals) is confirmed. Exemption u/s 10A in respect of Unit II - HELD THAT:- This Tribunal is of the considered opinion that when the assessee made claim in respect of Unit II, it has to be examined. The CIT(Appeals) may not have power to set aside the order of the Assessing Officer for re-examination. However, the matter needs to be re-examined by the Assessing Officer. Therefore, in exercise of power conferred on this Tribunal, the Assessing Officer is directed to re-examine the matter in respect of Unit II also. Claim of surcharge and education cess for the purpose of computing MAT credit - HELD THAT:- CIT(Appeals) directed the AO to allow the MAT credit after verification. The objection of the Department is that the CIT(Appeals) has no power to direct the Assessing Officer to verify. However, the MAT credit has to be verified before allowing the claim. The surcharge and education cess are part of income-tax as held by Apex Court in CIT v. K. Srinivasan [1971 (11) TMI 2 - SUPREME COURT] . Therefore, in exercise of power conferred on this Tribunal, the Assessing Officer is directed to verify the claim of the assessee and thereafter allow the claim with regard to MAT credit. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
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