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TMI Blog2019 (4) TMI 1439X X X X Extracts X X X X X X X X Extracts X X X X ..... have no applicability. In our view by a division bench judgement of Delhi High Court in the case of Commissioner Income Tax Vs. Damco Solutions Pvt. Ltd. . [ 2010 (10) TMI 592 - DELHI HIGH COURT]. The assessee had admittedly started manufacturing computer software for export prior to 1st April 2001, when section 10A was substituted by the Finance Act of 2000. It was under this amendment that the profit and gains derived by an undertaking from export of computer software came to be covered for deduction u/s 10A. The revenue contends that this benefit would not be available to an industry which was already existing and engaged in such activity. The interpretation of the revenue would render the first proviso to subsection (1) of section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the order of CIT (A) in allowing the claim under section 10A of the I.T. Act on units on which deduction under section 90HHE of the IT Act was being claimed and also on the method of computation of deduction under section 10A of the IT Act, 1961? 2] Before adverting to this question, we may record that the revenue s appeal contains several other questions concerning transfer pricing adjustments. However, it is an agreed position between the Advocates of both sides, that in case of the present assessee, between Government of India and that of United States of America, a Mutually Agreed Procedure has been followed and final agreement is arrived at. In view of this development, these additional questions have become academic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the revenue, this benefit would not be available to the existing industries. 5] Apart from this opposition to the very claim of the assessee's deduction, the revenue also questioned the computation of such claim arguing that the freight and insurance expenditure which is to be deleted from the export turnover, cannot be excluded for the purpose of computing the total turnover. 6] Section 80HHE of the Act pertains to deduction in respect of profits from export of computer software etc. Sub-section (5) of section 80 HHE provides that where deduction under said section is claimed and allowed in respect of the profits of the business referred in sub-section (1) for any assessment year, no deduction shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r export prior to 1st April 2001, when section 10A was substituted by the Finance Act of 2000. It was under this amendment that the profit and gains derived by an undertaking from export of computer software came to be covered for deduction under section 10A. The revenue contends that this benefit would not be available to an industry which was already existing and engaged in such activity. However, the interpretation of the revenue would render the first proviso to subsection (1) of section 10A wholly redundant. This proviso reads as under:- 10A(1) .. Provided 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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