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2014 (1) TMI 178 - ITAT BANGALOREComputation of deduction u/s 10A of the Act - Exclusion of foreign travel expenses from the total turnover – Held that:- Following Commissioner of Income-tax Versus Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] -while computing the exemption u/s 10A, if the export turnover in the numerator is to be arrived at after excluding certain expenses, the same should also be excluded from the total turnover in the denominator - When the statute prescribed a formula and in the said formula, 'export turnover' is defined, and when the 'total turnover' includes export turnover, the very same meaning given to the export turnover by the legislature is to be adopted while understanding the meaning of the total turnover, when the total turnover includes export turnover - If what is excluded in computing the export turnover is included while arriving at the total turnover, when the export turnover is a component of total turnover, such an interpretation would run counter to the legislative intent and impermissible - the order of the CIT(A) is correct and in accordance with law and he is justified in directing the AO to exclude the expenses both from the export turnover as well as from the total turnover while calculating deduction u/s 10A of the Act – Decided against Revenue.
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