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2019 (4) TMI 1439 - HC - Income TaxClaim under section 10A on units on which deduction u/s 80HHE as claimed - double deduction - method of computation of deduction u/s 10A - HELD THAT:- What subsection (5) of section 80 HHE thus prohibits is the claim of deduction allowed u/s 80HHE under any other provision, be it in the same assessment year or in other assessment year. In the present case, it is not even the ground of the revenue that the deduction u/s 10A claimed by the assessee in the present year is in relation to profit for which the assessee was granted deduction under section 80HHE. Sub-section 5 of section 80 HHE, therefore, in the present case would have no applicability. In our view by a division bench judgement of Delhi High Court in the case of Commissioner Income Tax Vs. Damco Solutions Pvt. Ltd. . [2010 (10) TMI 592 - DELHI HIGH COURT]. The assessee had admittedly started manufacturing computer software for export prior to 1st April 2001, when section 10A was substituted by the Finance Act of 2000. It was under this amendment that the profit and gains derived by an undertaking from export of computer software came to be covered for deduction u/s 10A. The revenue contends that this benefit would not be available to an industry which was already existing and engaged in such activity. The interpretation of the revenue would render the first proviso to subsection (1) of section 10A wholly redundant This proviso would apply to an industry which was already in existence, engaged in manufacturing and export of computer software when the said amendment was made in section 10A. However, such an industry would be eligible to claim that deduction in relation to profit and gain arising out of such activity only for remainder of the period of 10 assessment years, which could be claimed for consequent assessment years alone. Computation of benefit of section 10A - HELD THAT:- Issue is squarely covered by the judgement of Supreme Court in the case of Commissioner of Income Tax Vs. HCL Technologies, . [2018 (5) TMI 357 - SUPREME COURT] in which the Court held that the total turnover for the purpose of section 10 of the Act cannot be understood as defined for the purpose of section 80 HHE. It was further held that thus the expenses which are to be excluded from the export turnover, would also have to be excluded for the purpose of computing total turnover.
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