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2020 (9) TMI 1102 - AT - Income TaxComputation of deduction u/s.10A - reducing the impugned expenses both from the export turnover as well as from the total turnover - HELD THAT:- The issue raised is squarely covered in favour of assessee by the judgment in the case of CIT v. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] had categorically held that when expenses are reduced from export turnover, the same needs to be reduced also from the total turnover, while computing deduction u/s. 10A - DRP is justified in its direction that the impugned expenditure that is reduced from the export turnover need to be reduced also from the total turnover, while computing deduction u/s. 10A - Decided against revenue. Set off of brought forward losses - AO has reduced the brought forward losses from Bangalore (10AA unit) and Mumbai (10A unit) before computation of deduction u/s 10A/10AA - HELD THAT:- As relying on Yokogawa India Ltd. [2018 (5) TMI 357 - SUPREME COURT]while holding that losses cannot be set off against profits of eligible unit. In view of the judgment of the Hon’ble Apex Court, we direct the AO to calculate the deduction u/s.10A/ 10AA of the Act, without setting off the brought forward losses. It is ordered accordingly. Expenditure on buy-back of shares - revenue or capital expenditure - HELD THAT:- In view of the judgment of the Hon’ble High Court of Karnataka in the case of CIT v. Motor Industries Co. Ltd. [2014 (10) TMI 1026 - KARNATAKA HIGH COURT] we hold that the expenses incurred by the assessee for buy-back of shares is allowed as a revenue expenditure.
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