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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 ..... rnover has to be one and the same and the Department is bound to treat only actual export turnover which is received in convertible foreign exchange by the assessee as forming part of total turnover. In other words, the export turnover should be the same amount both as numerator and forming part of total turnover being the denominator for determining export profits under Section 10B(4) of the Act. appeal filed by the Revenue is dismissed. - IT APPEAL NO. 150 OF 2010 - - - Dated:- 5-7-2011 - C.N. RAMACHANDRAN NAIR AND P.S. GOPINATHAN, JJ. Jose Joseph for the Appellant. T.M. Sreedharan, V.P. Narayanan and Smt. C.K. Sherin for the Respondent. JUDGMENT C.N. Ramachandran Nair, J This is an appeal filed by the Revenue und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding for deduction of subsidy amount from the actual cost for the purpose of granting depreciation was introduced with effect from 01/04/1999. 4. Even though the CIT (Appeals) rejected the appeal, the 2nd appeal filed by the assessee was allowed by the Tribunal. The Tribunal held that subsidy having been received before 31/03/1998 and depreciation was granted for subsequent years based on the actual cost without reducing the subsidy amount under Explanation 10 to Section 43(1), the assessee is entitled to depreciation on the written down value for the assessment year 2002-03. The main reasoning of the Tribunal is that the provision for reduction of subsidy from cost of machinery was introduced by the above amendment only with effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... components supplied by the foreign buyer and adjusted from the export bills, in the reassessment proceedings the Assessing Officer took the view that even though export turnover should be the net amount obtained after reducing the value of components supplied by the foreign buyer, which was retained by them, so far as the total turnover is concerned, the Assessing Officer refused to exclude the value of the components withheld by the foreign buyer while settling the export bills. In other words, a different yardstick was adopted by the Assessing Officer in the reassessment completed under Section 147 of the Act wherein he adopted gross invoice value on the exports as export turnover forming part of total turnover and adopted it as the denom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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