TaxTMI 
TaxTMI 
2013 (10) TMI 1356
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....ances of the case and in law, the Ld CIT(A) had erred in allowing the claim, of receipt of duty draw back of Rs. 89,47,217/- under section 10B of the Income Tax Act, 1961 to the assessee company. 3. The appellant craves leave to add, alter, amend, delete or withdraw any ground of appeal during the course of appellate proceedings. 2. The revenue in this case had sought adjournment. However, while going through the file, we observed that the issue in dispute was squarely covered in favour of assessee by Special Bench decision of ITAT in the case of Maral Overseas Ltd. v. ACIT in I.T.A. Nos. 777 & 900/Ind/2004, therefore, we rejected the adjournment application and with the help of Ld representatives of revenue and assessee went through the ....
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....our of assessee vide Special Bench decision in the case of Moral Overseas Ltd. (supra). The ITAT has discussed similar situation vide paras 78 to 80 of the said order which is reproduced as under:- 78. Section 10B sub-section (1) allows deduction in respect of profits and gains as are derived by a 100% EOU. Section 10B(4) lays down special formula for computing the profits derived by the undertaking from export. The formula is as under :- Profit of the business of the Export turnover Undertaking X Total turnover of business carried out by the undertaking 79. Thus, sub-section (4) of section 10B stipulated that deduction under that section shall be computed by apportioning the profits of the business of the undertaking in the ratio of turn....
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....of the business" eligible for deduction u/s 10B of the Act. Once an income forms part of the business of the income of the eligible undertaking of the assessee, the same cannot be excluded from the eligible profits for the purpose of computing deduction u/s 10B of the Act. As per the computation made by the Assessing Officer himself, there is no dispute that both these incomes have been treated by the Assessing Officer as business income. The CBDT Circular No. 564 dated 5th July, 1990 reported in 184 ITR (St.) 137 explained the scope and ambit of section 80HHC and the mode of determination of profits derived by an assessee from the export of goods. I.T.A.T., Special Bench in the case of International Research Park Laboratories vs. ACIT, 212....