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TMI Blog2011 (1) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... r for the sake of convenience and brevity. 3. In assessee's appeals, identical grounds are raised except for variance in figures, hence, the grounds relating to asst. year 2005-06 are reproduced below:- i) On the facts and circumstances of the case, the learned CIT(A) has erred in holding that ₹ 10,63,878/- being leased line charges paid to Videsh Sanchar Nigam Ltd. are in the nature of expenditure for delivery or export of publication material. ii) Without prejudice to ground 1, on the facts and circumstances of the case, the learned CIT(A) has legally erred in ignoring the fact that the leased line charges of ₹ 10,63,878/- did not form part of Export Turnover and have not been separately recovered while realizing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to asst. year 2005-06, the assessee filed its return of income declaring total income of ₹ 4,43,836/- after claiming deduction u/s 10B of the Act amounting to ₹ 3,40,72,530/-. Assessment was completed u/s 143(3) vide order dated 26/12/2007 wherein deduction u/s 10A of the Act was reduced. The Assessing Officer made reduction in the export turnover for the purpose of computing the qualifying amount of deduction u/s 10A of the Act, 1961. The amounts reduced from the export turnover for the purpose of computation of deduction u/s 10A of the Act are as follows:- a) ₹ 10,63,878/- on account of lease line charges which according to the Assessing Officer, are attributable for export of software and therefore, the same has to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction of export turnover while computing the deduction u/s 10A/10B of the Act on account of unrealized export remittance within the stipulated time, the CIT(A) held in favour of the assessee by observing thus:- In view of the above facts that now the appellant had received post facto approval of R.B.I. to receive the CFE not realized within the stipulated time, post facto approval being an approval in the eye of law, cannot be the reason to deny any benefit to the appellant. Therefore, Assessing Officer is directed to treat such realization as Export Turnover and re-compute the deduction u/s 10B of the I T Act . 7.2 The first issue, for which the CIT(A) held against the assessee for both the asst. years, the assessee preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry decision has been brought to our notice. The relevant finding of the Tribunal in M/s Jaipuria Silk Mills (P) Ltd. is reproduced below:- 8. We have heard the rival submission and perused the material placed on record. The issue in question stands covered directly in favour of the assessee by the order of the Tribunal in assessee's own case for the asst.year 2005-06 (ITA No.406/Bang/2008 dated 10.7.2009), which in turn, followed the decision of the Special Bench cited supra. The relevant portion of the Tribunal's order in assessee's own case cited supra reads as follows:- We have heard the rival contentions and perused the material available on record. On our careful perusal of the facts and circumstances of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he formula prescribed by section 10B, it would be incongruous to interpret section 10B in a manner different from those two sections merely because there is no definition of total turnover in that section. Export turnover as defined in these sections excludes freight, telecom charges or insurance attributable to the delivery of the computer software outside India or expenses, if any, incurred in foreign exchange in providing technical services outside India. Thus statutorily parity is maintained between export turnover and total turnover in these sections. There is no reason why such parity cannot be maintained between export turnover and total turnover in section 10B just because total turnover has not been defined in that section . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me and word 'turnover' for sales effected or for business income. The assessee's business is wholly of export of manufactured silk fabric and hence word 'gross receipt' cannot be applied to export turnover here. 11. For the above said reasons, we reverse the order of the authorities below and direct the Assessing Officer to exclude from the export turnover as well as from the total turnover a sum of ₹ 96,39,523/- and ₹ 2,43,763/- being freight and insurance expenses respectively, while calculating deduction u/s 10B of the Act . 10.1 In the light of the above order of the Tribunal, alternative ground, namely, ground no.3 raised in assessee's appeals is allowed. Therefore, the AO is directed to red ..... X X X X Extracts X X X X X X X X Extracts X X X X
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