2015 (12) TMI 101

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....and the Revenue were heard together and are being disposed of by this consolidated order for the sake of convenience. 3. The assessee in ITA No. 254/PN/2011 has raised the following grounds of appeal :- 1. On the facts and under the circumstances of the case and in law, the Learned CIT(A) erred in confirming the addition of Rs. 3,58,878/-. 2. On the facts and under the circumstances of the case and in law, the Learned CIT(A) erred in applying the TNM Method instead of RMP Method. 3. The appellant craves for leave to add, to alter and / or to withdraw all or any of the above grounds of appeal, if necessary. 4. The Revenue in ITA No.256/PN/2011 has raised the following grounds of appeal :- 1) Whether ....

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....lause (iii) of explanation (2) of section 10B of the Act. 5) The order of the AO be restored and that of the CIT(A) be vacated. 6) The appellant craves leave to add, amend or alter any grounds of appeal. 5. The assessee has raised the following additional grounds of appeal:- a) Without considering provisions of section 10B of the Income Tax Act, 1961, the computation of exemption/deduction, sales turnover, expenses and profits of the Export Oriented Undertaking are not considered and instead these figures have been considered for the entire business of the assessee Company. b) There is error in assessment of income while considering deduction/exemption under section 10B of the Income Tax Act, 1961, sal....

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....ctions entered into by the assessee. 8. The perusal of grounds of appeal reveals that the assessee by way of ground of appeal No.1 has raised the issue with regard to addition of Rs. 3,58,878/-. The TPO while passing the order under section 92CA(3) of the Act had applied the TNMM method and worked out adjustment of Rs. 3,58,878/- to be made to the value of international transaction relating to finished goods trading exports, to arrive at arm's length price of the international transaction. By way of ground of appeal No.2, the assessee has raised the issue that the authorities below have erred in applying TNMM method instead of RMP method. However, before us, the only grievance of the learned Authorized Representative for the assessee....

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.... 10B of the Act. 11. We find that similar issue arose before the Tribunal in assessee's own case in ITA No.1215/PN/2011 relating to assessment year 2007 -08, which was heard along with bunch of appeals with lead order in ITA No.1206/PN/2011. The Tribunal vide order dated 25.02.2015 held that Excise duty is to be excluded from total turnover while computing deduction under section 10B of the Act. The relevanturnover relevant finding of the Tribunal vide paras 46 and 47 is as under:- "46. We find that the issue is squarely covered by the ratio laid down by the Hon'ble Supreme Court in CIT Vs. Laxmi Machine Works (Supra). The Hon'ble Supreme Court held that while interpreting the words "total turnover" in the formula in....