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TMI Blog2015 (10) TMI 1618X X X X Extracts X X X X X X X X Extracts X X X X ..... nly for the unexplained part of the aforesaid ten consecutive assessment years. Hence we set aside the issue to the AO to compute deduction u/s 10B according to the proviso to section 10B after giving a reasonable opportunity to the assessee. - Decided in favour of assessee for statistical purposes. - ITA No. 27/Hyd/2015 - - - Dated:- 17-6-2015 - B. Ramakotaiah, AM And Asha Vijayaraghavan, JM,JJ. For the Appellant : Shri Nitish Grover For the Respondent : Shri Rajat Mitra, DR ORDER Per Smt. Asha Vijayaraghavan, JM This is an appeal preferred by the assessee against the order of the ld CIT (A)-II Hyderabad, dated 13.10.2014 relating to A.Y 2010-11. 2. Briefly stated, the assessee is engaged in the business of manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eparate accounts are maintained for both units, separate final accounts in the form of balance sheet and profit and loss account and separate audit report was prepared for both the units. In addition consolidated audit report was also prepared. The ld Counsel for the assessee s contention was that the deduction u/s 10B is to be computed as under: Profits of the EOU Unit x Export Turnover of EOU Unit Exports + Domestic Turnover of EOU Unit 5. The ld CIT (A) held as under: The CBDT vide Circular No.7 dated 16.07.2013 clarified the issue as under: 5. From the above it is evident that irrespective of their continued placement in Chapter III, section 10A and 10B as substituted by Finance Act, 2000 provide for deduction of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of section 70 and 71 of the Act there is any income (where there is no brought forward loss to be set off in accordance with the provisions of section 72 of the Act) and the same is eligible for deduction in accordance with the provisions of Chapter VI-A or section 10A, 10B etc. of the Act, the same shall be allowed in computing the total income of the assessee . Therefore, the principle adopted by the AO is correct. Keeping in view the above directions, the AO is directed to recomputed the deduction u/s 10B. 5. In the result the appeal is partly allowed . 6. Aggrieved, assessee is in appeal before us. The ld Counsel for the assessee submitted before us that the CIT (A) has not appreciated, that the ld AO has incorrectly added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to the deduction referred to in this sub-section only for the period of aforesaid ten consecutive assessment years . 9. The company has maintained and submitted separate set of audited accounts for the export unit, non export trading activity and consolidated accounts for the entire entity, whereas we find that the AO has not taken into account and has got confused between the total turnover of the business and total turnover of the undertaking. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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