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TMI Blog2016 (8) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... nterference. Accordingly, we dimiss the Revenue’s appeal on this issue. Exclusion of expenses from export turnover vis-à-vis total turnover for the purpose of calculating deduction u/s. 10B - Held that:- CIT(Appeals) has relied upon the decision of the Hon'ble jurisdictional High Court in the case of Tata Elxsi Ltd. v. ACIT [2011 (8) TMI 782 - KARNATAKA HIGH COURT ] and the subsequent decision in CIT & DCIT v. Motor Industries Co. Ltd. (2015 (7) TMI 876 - KARNATAKA HIGH COURT) and directed the AO to allow the assessee’s claim for reducing the expenditure incurred in foreign currency not only from the export turnover, but also from the total turnover.nothing was brought on record before us to the effect that the decision of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the assessments concluded u/s. 143(3) of the Act vide orders dated 31.10.09, 20.12.10 and 30.12.12, the total income has been determined at Nil for the AY 2007-08, for the AY 2008-09 MAT income has been determined at ₹ 1,76,79,341 and for the AY 2010-11 at ₹ 9,59,428 under the normal provisions of the Act. 3. Aggrieved by the order of the Assessing Officer, the assessee preferred appeals for all the three assessment years before the CIT(Appeals). Since the issues involved were common, the CIT(A) has passed a common order. 4. With respect to deduction u/s. 10B, the facts are that the AO for the respective assessment years noted that the assessee had claimed deduction u/s. 10B of the Act before computing the brought for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein it has been held that where certain expenses are excluded from the export turnover for the purpose of calculating deduction admissible under the Act, such expenses should also be excluded from the total turnover, as the export turnover forms part of the total turnover. The CIT(A) also relied on the subsequent decision of the Hon'ble High Court of Karnataka in the case of CIT DCIT v. Motor Industries Co. Ltd. [ITA No.776/2007 c/w ITA No.1172/2006, ITA No.1171/2006, 744/2007 and 1155/2006 dated 13.6.2014] . 8. Aggrieved, the Revenue is in appeal before us on the following grounds:- 1. The order of the Ld. CIT(A) is contrary to the facts and circumstances of the case and hence not sustainable. 2. The CIT(A) has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 20 of its judgment dealt with this issue and noticed that section 10A(1) of the Act is in pari materia with section 10B of the Act. Hence, we are convinced that the CIT(Appeals) was right in his decision and his order does not call for any interference. Accordingly, we dimiss the Revenue s appeal on this issue. 11. The next issue is with regard to exclusion of expenses from export turnover vis- -vis total turnover for the purpose of calculating deduction u/s. 10B of the Act. 12. The CIT(Appeals) has relied upon the decision of the Hon'ble jurisdictional High Court in the case of Tata Elxsi Ltd. v. ACIT, 349 ITR 98 and the subsequent decision in CIT DCIT v. Motor Industries Co. Ltd. (supra) and directed the AO to allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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