TMI Blog2013 (10) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue are as under:- 1. On the facts and circumstances of the case, the order of CIT(A) is wrong, perverse, illegal and against the provisions of law which is liable to be set aside. 2. On the facts and circumstances of the case and in law, the Ld CIT(A) had erred in allowing the claim, of receipt of duty draw back of ₹ 89,47,217/- under section 10B of the Income Tax Act, 1961 to the assessee company. 3. The appellant craves leave to add, alter, amend, delete or withdraw any ground of appeal during the course of appellate proceedings. 2. The revenue in this case had sought adjournment. However, while going through the file, we observed that the issue in dispute was squarely covered in favour of assessee by Special Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties and have gone through the material available on record. We find that the only issue in dispute is regarding eligibility of duty draw back for the computation of deduction u/s 10B of the Act. The issue is squarely covered in favour of assessee vide Special Bench decision in the case of Moral Overseas Ltd. (supra). The ITAT has discussed similar situation vide paras 78 to 80 of the said order which is reproduced as under:- 78. Section 10B sub-section (1) allows deduction in respect of profits and gains as are derived by a 100% EOU. Section 10B(4) lays down special formula for computing the profits derived by the undertaking from export. The formula is as under :- Profit of the business of the Export turnover Undertaking X Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits of the business which is, however, conspicuous by its absence in section 10B. On the basis of the aforesaid distinction, sub-section (4) of section 10A/10B of the Act is a complete code providing the mechanism for computing the profits of the business eligible for deduction u/s 10B of the Act. Once an income forms part of the business of the income of the eligible undertaking of the assessee, the same cannot be excluded from the eligible profits for the purpose of computing deduction u/s 10B of the Act. As per the computation made by the Assessing Officer himself, there is no dispute that both these incomes have been treated by the Assessing Officer as business income. The CBDT Circular No. 564 dated 5th July, 1990 reported in 184 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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