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2016 (8) TMI 254 - AT - Income TaxDeduction u/s. 10B - Held that:- considered the decision of Hon'ble High Court of Karnataka in CIT v. Yokogawa India Ltd. (2011 (8) TMI 845 - Karnataka High Court) wherein it has been held that relief u/s. 10A of the Act is to be computed prior to giving effect to carry forward and set off provisions of the Act. The Hon’ble High Court in paras 10 to 20 of its judgment dealt with this issue and noticed that section 10A(1) of the Act is in pari materia with section 10B of the Act. Hence, we are convinced that the CIT(Appeals) was right in his decision and his order does not call for any interference. Accordingly, we dimiss the Revenue’s appeal on this issue. Exclusion of expenses from export turnover vis-à-vis total turnover for the purpose of calculating deduction u/s. 10B - Held that:- CIT(Appeals) has relied upon the decision of the Hon'ble jurisdictional High Court in the case of Tata Elxsi Ltd. v. ACIT [2011 (8) TMI 782 - KARNATAKA HIGH COURT ] and the subsequent decision in CIT & DCIT v. Motor Industries Co. Ltd. (2015 (7) TMI 876 - KARNATAKA HIGH COURT) and directed the AO to allow the assessee’s claim for reducing the expenditure incurred in foreign currency not only from the export turnover, but also from the total turnover.nothing was brought on record before us to the effect that the decision of the Hon'ble High Court of Karnataka has been reversed /modified by the Hon’ble Supreme Court, even though it is claimed that SLP has been recommended to be filed by before the Hon’ble Supreme Court. In such facts and circumstances, the Tribunal and other authorities under the jurisdiction of the Hon'ble High Court of Karnataka are bound by its decision. Hence, we do not find any infirmity in the order of the CIT(Appeals)
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