2012 (10) TMI 510

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... allowing deduction to the assessee on the entire domestic sale of scrap of Rs. 23,76,390/- in assessment year 2001-02 and Rs. 21,91,984/- in assessment year 2002-03. 3. The brief facts of the case are that during assessment year 2001-02 the assessee had shown export sales of Rs. 74,57,18,839/- and domestic sale of scrap of Rs. 23,76,390/-. The assessee contended before the Assessing Officer that as per second proviso to section 10B(1), any profits and gains derived from domestic sales of articles of things or computer software which did not exceed 25 percent of the total sales shall be deemed to be the profits and gains derived from the export of articles or things or computer software. It is the contention of the assessee that out of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eal of the assessee should be allowed. 7. We have heard the rival submissions and perused the orders of the lower authorities and materials available on record. In the present appeal for assessment year 2001-02 before us, the undisputed facts are that the total export turnover of the assessee in the year was Rs. 74,57,18,839/- which was 99.68 percent of the total turnover and the domestic sales of scrap was Rs. 23,76,390/- which was 0.32 percent of the total turnover and the income from the business of the assessee was Rs. 8,60,20,343/-. Thus, the domestic turnover of the sales of the assessee in the year under consideration did not exceed 25 percent of the total sales and it is not in dispute that the domestic turnover was less than 25 pe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... was his submission that after omission of the second proviso to sub-section (1) of section 10B of the Act from assessment year 2002-03 and onwards, the assessee will get deduction for export sales on proportionate basis. He submitted that the scrap sales would form part of the total turnover of the assessee in the formula for computing the eligible deduction u/s 10B of the Act. He submitted that the sale proceeds of scrap cannot be reduced from the eligible profits of the business of the assessee. 11. The DR , on the other hand, supported the orders of the lower authorities. 12. We have heard the rival submissions and perused the orders of the lower authorities and materials available on record. The undisputed facts of the case are that .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X