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2017 (1) TMI 1299 - AT - Income TaxDeduction under Section 10A - whether the unrealized export proceeds, if any, in foreign currency has to be included in the total turnover for computing deduction under Section 10A? - AO has excluded the sale proceeds, which was not realized from the total turnover - Held that:- As in Galaxy Granites (P.) Ltd. v. CIT [2012 (9) TMI 68 - MADRAS HIGH COURT ] while considering the claim under Section 80HHC of the Act, found that unrealized sale proceeds should be included in total turnover for the purpose of computing allowable deduction under Section 80HHC of the Act. The assessee now claims before this Tribunal that on the basis of very same analogy, for the purpose of allowing deduction under Section 10A of the Act, the unrealized sale proceeds should be included in the total turnover. As rightly submitted by the Ld. D.R., the Assessing Officer or the TPO had no occasion to consider this judgment of Madras High Court in Galaxy Granites (P.) Ltd. (supra). Therefore, this Tribunal is of the considered opinion that the Assessing Officer has to first consider this judgment of Madras High Court. Accordingly, the orders of the authorities below are set aside in respect of inclusion of unrealized sale proceeds in the export turnover and remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue in the light of the judgment of Madras High Court in Galaxy Granites (P.) Ltd. (supra) and thereafter decide the issue, in accordance with law, after giving an opportunity to the assessee.
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