U/s 10 B of Income Tax Act

[Rinky Jhanwar]

U/s section 10B Amount Excluded from export turnover should also be excluded from total turnover. There is evidence inherent in the definition of ‘export turnover’ itself that it should represent “consideration” for export of the articles or things or computer software. It follows that the expression ‘total turnover’ which is not defined in section 10B should also be interpreted in the same manner. Thus the items of expenses referred to in the definition of ‘export turnover’ cannot form part of the total turnover since the receipts by way of recovery of such expenses cannot be said to represent consideration for the goods exported. In this behalf, it must be borne in mind that total turnover is nothing but the aggregate of the domestic turnover and the export turnover. So it should be interpreted in the same manner. mu queries are 1) Is there any case law / judgement to support 2) Any suggestin / wayout on the above issue

AI Summary

Section 10B Interpretation: Exclude Certain Expenses from Both Export and Total Turnover in Income Tax Calculations. A discussion on Section 10B of the Income Tax Act addresses whether amounts excluded from export turnover should also be excluded from total turnover. It argues that since 'export turnover' represents consideration for exported goods, 'total turnover' should be interpreted similarly, excluding expenses not representing such consideration. A participant queries about relevant case law or solutions, and a respondent suggests reviewing specific case laws and provides a reference to an ITAT Madras decision. This decision clarifies that certain expenses should be excluded from both export and total turnover in the formula under Section 10B.