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TMI Blog2010 (12) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... d the following grounds : 1. The order of the learned CIT(A) is contrary to law and facts and circumstances of the case. 2.1. The learned CIT(A) erred in holding that deduction u/s 10B should be allowed before setting off carry forward losses. 2.2. It is submitted that the decision of the ITAT relied upon by the CIT(A) in the case of M/s. Changepond Technologies Pvt. Ltd. and M/s. Ford Business Service Centre Private Ltd. have not become final and appeals u/s 260A to High Court have been preferred by the department. 3.1 The learned CIT(A) erred in holding that scrap sales and provisions written back should be considered as incomes eligible for relief u/s 10B and hence the same should not be included while computing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 10B(6) of the Act were not applicable. 6. We have considered the rival submissions. A perusal of the decision of the co-ordinate Bench of this Tribunal in the case of Sword Global (I) P. Ltd. referred to supra, shows that the co-ordinate Bench of this Tribunal has held that the profits are required to be first computed in accordance with the provisions of the Act and all the brought forward losses and depreciation were first to be set off. A perusal of the provisions of sec. 10B also clearly shows that the deduction is to be allowed from the total income of the assessee. Total income has been defined in section 2(45) to mean the total amount of income referred to in section 5 computed in the manner laid down in the Act. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 579) as also in the case of Cambay Electric Supply Industrial Company Ltd. (113 ITR 84). It was the submission that the scrap sales and the provisions written back were not profits and gains derived by the assessee from the export of the article or thing mentioned in sec. 10B. It was the submission that the order of the learned CIT(A) is liable to be reversed. 8. In reply, the learned authorised representative of the assessee submitted that the learned CIT(A) had followed the decision of the Hon'ble jurisdictional High Court in the case of Fenner (India) Ltd. v. CIT reported in 241 ITR 803 as also the decision of the jurisdictional High Court in the case of CIT v. Abdul Rahman Industries reported in 293 ITR 475, to hold that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ink/nexus with the industrial undertaking, respectfully following the decision of the Hon'ble jurisdictional High Court in the case of Fenner (India) Ltd., the finding of the learned CIT(A) on this issue stands confirmed. Further as it is noticed that the provision no longer required and which is credited to the P L Account is on account of the purchases made by the assessee, it has a direct link with the business activity of the undertaking and the exports of the articles or things is as a consequence of the purchase. By writing back the provision no longer required, what happens is that the purchase cost goes down consequently increasing the export income as it is the profits and gains derived by the undertaking from the export of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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