2013 (1) TMI 984 - HC - Income Tax

Appeal Dismissed: Exclusion of Expenses from Export Turnover Upheld

The Bombay HC dismissed the appeal for AY 2005-2006, upholding the exclusion of expenses from export turnover for deduction under sections 10A & 10B ... Deduction under section 10A & 10B - exclusion of expenses reduced from export turnover from total turnover for computing deduction - application of High Court precedent in identical controversy - effect of a pending SLP on applicability of High Court decisionDeduction under section 10A & 10B - exclusion of expenses reduced from export turnover from total turnover for computing deduction - application of High Court precedent in identical controversy - Tribunal was justified in excluding expenses reduced from export turnover from the figure of total turnover while computing deduction under section 10A & 10B. - HELD THAT: - The Court observed that the very question raised by the Revenue has been answered against it by this Court in Commissioner of Income-Tax v. Gem Plus Jewellery India Ltd. The parties conceded that the Gem Plus decision is binding on the present controversy. Having regard to that precedent, the Court found no reason to entertain the appeal and declined to re-open the issue notwithstanding that a Special Leave Petition against the Gem Plus decision had been filed by the Department. The determinative legal position adopted was that expenses deducted from export turnover should not be included in total turnover for computing the statutory deduction under section 10A & 10B, in line with the cited High Court ruling. [Paras 2, 3]Appeal dismissed; Tribunal's view upheld that such expenses are to be excluded from total turnover for computation of deduction under sections 10A & 10B.Final Conclusion: The appeal relating to Assessment Year 20052006 is dismissed in view of the Bombay High Court's earlier decision in Gem Plus, with no order as to costs. The Bombay High Court dismissed the appeal for Assessment Year 2005-2006 regarding the exclusion of expenses from export turnover while computing deduction under sections 10A & 10B of the IT Act 1961. The court upheld the decision in the case of Commissioner of IncomeTax v/s. Gem Plus Jewellery India Ltd., stating that the expenses should be excluded. The appeal was dismissed with no order as to costs.