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TMI Blog2013 (6) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was framed u/s 143(3) and the learned Assessing Officer allowed deduction u/s 10BA on the duty draw back and as such initiation of re-assessment proceeding is change of opinion. 2. That That on the facts and in the circumstances of the case, the ld. CIT(A) erred in sustaining addition amounting to ₹ 21,45,095/- holding that duty draw back received by the assessee not eligible for deduction u/s 10BA. 3. That the petitioner may kindly be permitted to raise any additional ground and / or alternative ground at or before the hearing of appeal 4. The petitioner prays for justice and relief.'' 2.1 During the course of hearing, Ground No. 1 was not pressed and Ground Nos. 3 and 4 are general in nature, so do not require any comment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the profits of the business, the same proportion as the export turnover of the business carried on by the assessee." Clarifications on notes of clauses of the Finance Act, 2001 clarifies the purpose of this amendment that "under the existing provision contained in s.s. (4), the profits derived from export of articles or things or computer software shall be the amount which bears to the profit of the business, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the assessee. Sub clause (b) seeks to clarify that such proportions shall be calculated with reference to the profits and gains of the business of the undertaking and not fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be allowed from the total income of the assessee. Sub Section (1) of Section 10BA is subject to the provisions of S.Ss. 2, 3, 5, 6 and 7 but s.s. 4 lays down a method of computation for the purpose of sub section (1). Likewise, the sale proceeds of DEPB cannot be considered as part of turnover as it is not the sale proceeds of the articles or things manufactured and sold by the assessee, then the profits from sale of DEPB cannot apportioned on treated on profit derived by the undertaking from export out of India. The exemption provisions in 10BA have to be liberally interpreted unless the credit of DEPB and DDB is expressly taken away. 12. Accordingly, we are left with no option but to decide the impugned common issue, in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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