Court dismisses appeal on foreign currency expenditure exclusion & unabsorbed depreciation setoff under Section 10B.

The Court dismissed the appeal regarding the exclusion of expenditure incurred in foreign currency from total turnover under Section 10B, citing precedent. Similarly, the Court rejected the appeal on the set off of unabsorbed depreciation and brought forward loss before computing deduction under Section 10B, referencing prior rulings. The Revenue highlighted pending appeals at the Apex Court, with directions for Assessing Authority to act accordingly based on the Apex Court's decisions.

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Issues:
1. Whether the expenditure incurred in foreign currency excluded from export turnover should be excluded from total turnover when there is no provision in Section 10B to exclude from total turnoverRs.
2. Whether unabsorbed depreciation and brought forward loss can be set off from business profits before computing deduction u/s.10B of the Act when section 10B provides for deduction of benefit on the profits and gainsRs.

Analysis:
1. The first issue revolves around the Tribunal's decision to exclude expenditure incurred in foreign currency from total turnover despite the absence of a specific provision in Section 10B for such exclusion. The High Court, citing the judgment in the case of Commissioner of Income Tax & Another vs. Tata Elxsi Ltd., held that the matter had already been settled in favor of the assessee in a previous ruling. Therefore, the Court found no merit in the appeal and dismissed it.

2. The second issue concerns the set off of unabsorbed depreciation and brought forward loss from business profits before computing deduction under section 10B of the Act. The High Court referred to the decision in the case of Commissioner of Income Tax & Another vs. Yokogawa India Ltd., where a similar issue had been addressed. The Court reiterated that the question had already been resolved in favor of the assessee in a previous ruling. Consequently, the Court dismissed the appeal. However, the Revenue pointed out that appeals against the aforementioned judgments were pending before the Apex Court. In case of a favorable outcome for the Revenue at the Apex Court, the Assessing Authority was directed to take consequential actions under Section 260(1A) of the Income Tax Act, 1961, based on the orders issued by the Apex Court.

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