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TMI Blog2012 (6) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent assessee. 3. The respondent is an industrial unit in the Cochin Special Economic Zone engaged in production and export of goods, most of which is to one client outside India. While setting up the industrial unit, the respondent got incentives from both the Central and State Governments, some of which were in the form of subsidy based on capital investments which include cost of plant and machinery. In the regular assessment for the assessment year 2002-03, the Assessing Officer allowed depreciation on the written down value of block of assets in terms of the claim made by the assessee. However, the Assessing Officer noticed that part of the cost of the machinery forming block of assets was subsidised by the State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e unable to interfere with the orders of the Tribunal because the Tribunal has followed the decision of the Honourable Supreme Court in the case of CIT v. P.J. Chemicals Ltd. [1994] 210 ITR 830/76 Taxman 611. Further we do not know on what basis the Department can introduce retrospectivity to the amendment introduced when the Legislature has not done so. Obviously, the above amendment is prospective in nature and the same applies to investments made on plant and machinery and other depreciable assets after 01/04/1999. So much so, we uphold the order of the Tribunal and dismiss the appeal on this issue. 6. The next issue raised pertains to the pattern of determination of export profit eligible for deduction. There is no dispute on the formu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 404. We are unable to accept the contention of the Standing Counsel that export turnover forming part of total turnover for the purpose of denominator should include the value of the components supplied by the foreign buyer which was not received by the assessee. We do not know how the Department can raise this contention because for the purpose of the numerator that is while adopting export turnover they have accepted the position that export turnover is the net amount received in convertible foreign exchange which is paid by the foreign buyer after deducting cost of components supplied by them. In fact, the total turnover is the gross turnover which comprises of the turnover of business done domestically and the export business. For num ..... X X X X Extracts X X X X X X X X Extracts X X X X
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