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TMI Blog2013 (4) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ermination of export turnover for the purpose of deduction under Section 10B of the Income Tax Act (hereafter referred to as the Act for short). 2. The assessee is a 100% export oriented unit engaged in manufacturing and export of coir products by using synthetic materials as well. Being a 100% EOU the assessee is entitled to deduction under Section 10B on the profit earned on export. However, since the assessee has DTA sales, the eligible export profit for deduction has to be worked out in terms of Section 10B(4) of the Act, which provides for working out proportionate profit on export turnover from the total profit. There is no dispute on the total profit or on the total turnover and the only dispute is what is export turnover tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover" means the consideration in respect of export (by the undertaking) of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India;" 5. Relying on the decision of the Karnataka High Court in Commissioner of Income Tax and another v. Infosys Technologies Limited, reported in 246 CTR (KR) 371 and the decision of the Honourable Supreme Court in Continental Construction Ltd. v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the export turnover and only net turnover could be reckoned for the computation of eligible deduction. 8. The short question therefore to be considered is whether an agent canvassing orders for the assessee is engaged in rendering technical services to the assessee. There is nothing to indicate in the records or in any of the orders including the assessment order that the agent, who rendered service and to whom payment is made by the assessee, has rendered any technical or professional service answering the definition of "technical service". Even though "technical service" as such is not defined under Section 10B, it is given meaning under Explanation 2 to Section 9(vii) of the Act, from which it is clear that it has only literal meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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