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TMI Blog2018 (3) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... AO to allow the claim/reductions after making verification. In our opinion, his order does not suffer from any legal infirmity. The AO is directed to give effect to the order of the FAA within a period of three months of receipt of our order. - ITA No.4063/Mum/2016 - - - Dated:- 14-3-2018 - Shri Rajendra, AM And Sandeep Gosain, JM For The Revenue : Shri Rajesh Kumar Yadav For The Assessee : Shri Forum Mehta Order u/s. 254(1) of the Income- tax Act, 1961(Act) Per Rajendra, AM: Challenging the order dated 21/03/2016 of the CIT(A)-2, Mumbai the assessee has filed the present appeal. Assessee-company, engaged in the business of manufacturing and sale of transmission gears and gear boxes, filed its return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the course of hearing before us, the Authorised Representative(AR) stated that business funds of EOU were retained for subsequent business requirements, that funds were not kept idle, that financial wisdom required to earn income on such funds, that interest income was directly linked with the business of the EOU. He relied on the cases of Maral Overseas Ltd. (ITA/777 and 900/Ind/2004, dated 28/03/2012)and Hewlett Packard Global Soft Ltd. (ITA 812 of 2007 of Hon ble Karnataka High Court). The Departmental Representa - tive(DR)supported the order of the AO and stated that income was not derived from the industrial undertaking, that the cases relied upon by the AR were not similar to the facts are case under consideration. 2.3. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In case of Liberty India, the Hon'ble Supreme Court has dealt with the provisions of section 80IA of the Act wherein no formula was laid down for computing the profits derived by the undertaking which has specifically been provided under sub-section (4) of section 10B while computing the profits derived by the undertaking from the export. Thus, the decision of the Hon'ble Supreme Court is of no help to the revenue in determining the claim of deduction u/s 10B in respect of export incentives. 78 . 79. Thus, sub-section (4) of section 10B stipulated that deduction under that section shall be computed by apportioning the profits of the business of the undertaking in the ratio of turnover to the total turnover. Thus, not-wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locations in STPI or SEZs. etc. makes them a special category of assessees entitled to the incentive in the form of 100% Deduction under Section 10-A or 10-B of the Act, rather than it being a special character of income entitled to Deduction from Gross Total Income under Chapter VI-A under Section 80-HH, etc. The computation of income entitled to exemption under Section 10-A or 10-B of the Act is done at the prior stage of computation of Income from Profits and Gains of Business as per Sections 28 to 44 under Part-D of Chapter IV before Gross Total Income as defined under Section 80-B(5) is computed and after which the consideration of various Deductions under Chapter VI-A in Section 80HH etc. comes into picture. Therefore analogy of Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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