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TMI Blog2021 (5) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... ssist the revenue. In any event this issue needs to be remanded to the Ld.AO for due verification of evidences filed by assessee. We therefore direct the Ld.AO to verify the details filed by assessee and to consider the claim in accordance with law. Neeedless to say that proper opportunity of being heard should be granted to assessee in accordance with law. Foreign exchange gain as excluded from the export turnover but not from the total turnover for the purposes of 10A deduction - HELD THAT:- Admittedly this issue now is stands squarely settled by the decision of Hon ble Supreme Court in case of HCL Technologies Ltd.[ 2018 (5) TMI 357 - SUPREME COURT] - as been submitted that foreign exchange gain is excluded from export turnover, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein in paragraph 6 there is an observation that inadvertently the corporate tax issues were not adjudicated while passing order dated 11/12/2017. Accordingly the order dated 11/12/2017 was recalled for the limited purposes to adjudicate following grounds: II.Corporate Tax 1.1 Other income' not considered as part of eligible business profits' while computing section 10A deduction 1.1. The Ld. AO erred in re-computing the deduction under section 1 OA of the Act after reducing other income of ₹ 37,56,066 from the profits of the undertaking eligible for deduction under section 1 OA of the Act without appreciating the fact that other income consisting of house rent deposits, claim in respect of penalty amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e loss/gain. The Ld. AO ought to have appreciated that if foreign exchange loss is reduced from the export turnover, foreign exchange gain should be added to the export turnover. 2.4. Notwithstanding and without prejudice to the above, should the foreign exchange gain of ₹ 95,81,206 be adjusted from the export turnover, the same should be adjusted with both the export turnover and total turnover in arriving at the deduction under section 10A of the Act. 3. Adjustment of unbilled revenue of ₹ 75,51,873. 3.1. The Ld. AU has erred in considering that basis Form 56F, an amount of R6,13,387 has been realized out of export proceeds of ₹ 62,33,89,825/-. The Ld. AU ought to have appreciated that entire amount has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived yet. The appellant craves leave to add, alter, rescind and modify the grounds herein above or produce further documents, facts and evidence before or at the time of hearing of this appeal. For the above and any other grounds which may be raised at the time of hearing, it is prayed that necessary relief may be provided. II. Corporate tax: 2. Ground No.1: This issue has been raised by assessee as the authorities below upheld exclusion of other income, while computing deduction under section 10 A of the Act. 3. The Ld.AR submitted that assessee is an 100%/EOU, and therefore all income/expenses are closely related and have a direct nexus to the business of the assessee. It has been submitted that, the Ld.AO di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome is eligible for deduction under section 10A of the Act. 6. On the contrary, Ld. CIT DR placed reliance on assessee s own case for assessment year 2006-07 in ITA No.1261/B/2010 by order dated 31/12/2014 in support of argument that there is no nexus between other income and business income, and therefore it cannot be considered as part of eligible to be considered for computing deduction under section 10A of the Act. 7. We have perused submissions advanced by both sides in light of records placed before us. We have perused the order relied by the Ld.CIT.DR. She placed specific reference to para 7.3 of the order wherein interest income earned on fixed deposits made for obtaining credit facility was considered by assessee to be eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with law. Accordingly this ground raised by assessee stands allowed for statistical purposes. 12. Ground No. 3 has been raised by assessee for the adjustment of unbilled revenue amounting to ₹ 75,51,873/-. 12.1 The Ld.AR submitted that Ld.AO reduced the said sum towards unrealised export sales from export turnover for computing 10 A deduction, but did not reduce the same from total turnover. On the objections being raised before the DRP, the DRP directed the Ld. AO to verify the same, but Ld.AO failed to verify as per DRP directions. It is also submitted that, the Ld.AO further erred in reducing the amount of unbilled revenue twice while computing the deduction. 13. The Ld.AR submitted that, the unbilled revenue r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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