TMI Blog2020 (5) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ARNATAKA HIGH COURT] and the same is confirmed. Deduction u/s 10A - enhanced income arising out of disallowance u/s 40(a)(ia) against non-deduction of tax on rent payment u/s.194I - HELD THAT:- This issue is squarely covered by the judgment in the case of CIT v. Gem Plus Jewelery India Ltd. [2010 (6) TMI 65 - BOMBAY HIGH COURT] wherein held that the assessee is entitled to exemption u/s 10A of the Act with reference to the addition of disallowance of payments as a plain consequence of the disallowance and the add back made by the AO is an increase in the business profit of the assessee. Being so, we do not find any infirmity in the order of the CIT(A), hence, the same is confirmed. Deduction u/s 10A - assessee has offered the additional income as business profit in the revised return of income - HELD THAT:- In the present case, the assessee has offered the subsequent realized export income by filing a revised return. Therefore, the same should be considered for granting deduction u/s 10A of the Act, and there is no necessity to rectify the same after completion of assessment as held by the Delhi Tribunal in the case of ITO v. M/s.PCL Exports [ 2011 (3) TMI 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect in law in following the judgments of jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd., which has not become final since the same has not been accepted by the Department and SLPs are pending before the Hon ble Apex Court? 4. After hearing both the parties and perusing the material on record, we find that this issue is squarely covered by the judgment of the Hon ble Supreme Court in the case of CIT v. HCL Technologies Limited [(2018) 404 ITR 719 (SC)] , wherein it was held by the Hon ble Supreme Court that the expenditure incurred towards telecommunication charges and foreign travel expenses attributed to the delivery of computer software for providing technical services outside India to be excluded both from export turnover and total turnover for the purpose of computation of deduction u/s 10A of the Act. Being so, we do not find any infirmity in the order of the CIT(A) in following the judgment of the Hon ble Karnataka High Court in the case of CIT v. Tata Elxsi Limited [(2012) 349 ITR 98 (Kar.)] , and the same is confirmed. Accordingly, ground Nos.2 and 3 raised by the Revenue are dismissed. 5. Ground No.4 raised by the Revenue is whether on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by holding that the additional revenue of ₹ 157,993,598 would not be eligible for a deduction under section 10A and therefore, should be excluded from the `Export Turnover while computing the deduction under section 10A of the Act on the ground that the sale proceeds were not received within the stipulated time lines. 3B. That the learned CIT(A) erred in holding that the provisions of section 115(11A) would not be applicable in allowing the deduction under section 10A of the Act. 12. The facts of this issue are that the Assessing Officer excluded additional revenue of ₹ 15,79,93,598 in the revised return of income filed on 31.03.2011. The assessee made a plea before the Assessing Officer that the invoice relating to this revenue was raised on 29.03.2011 and the amount was collected on 31.03.2011 and claimed deduction u/s 10A of the Act on this income. The Assessing Officer did not consider this amount for deduction u/s 10A of the Act for the reason that the sale proceeds were not received within the stipulated time limit. This view of the A.O. has been upheld by the CIT(A). 13. Aggrieved, the assessee is in appeal before us. Before us, it was the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ournment, which was granted to 22.03.2011. In absence of the assessee, the learned DR explained the facts of the case. However, he could not point to any error in the impugned order, which requires corrections from us. On perusal of the order, we find that section 155(11A) permits a mechanism to modify the order in case sale proceeds are not received in convertible foreign exchange in India within the prescribed time but are received after the expiry of the limitation. In view thereof, it would not be proper to allow deduction at lower amount and thereafter rectify the order to grant correct deduction u/s 155(11A). In view thereof, we do not find any reason to interfere with the order of the learned CIT(A). 15. Being so, in the present case, the assessee has offered the subsequent realized export income by filing a revised return. Therefore, the same should be considered for granting deduction u/s 10A of the Act, and there is no necessity to rectify the same after completion of assessment as held by the Delhi Tribunal in the case of ITO v. M/s.PCL Exports (supra) . Accordingly, this ground of the assessee is allowed. 16. Ground No.4 raised by the assessee reads as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above Speech shows that the income-tax authorities were unable to bring certain companies within the net of income-tax because these companies were adjusting their accounts in such a manner as to attract no tax or very little tax. It is with a view to bring such of these companies within the tax net that section 115J was introduced in the Income-tax Act with a deeming provision which makes the company liable to pay tax on at least 30 per cent of its book profits as shown in its own accounts. For the said purpose, section 115J makes the income reflected in the companies' books of account as the deemed income for the purpose of assessing the tax. If we examine the said provision in the above background, we notice that the use of the words 'in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act' was made for the limited purpose of empowering the assessing authority to rely upon the authentic statement of accounts of the company. While so looking into the accounts of the company. an Assessing Officer under the Income-tax Act has to accept the authenticity of the accounts with reference to the provisions of the Companies Act which obli ..... 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