TaxTMI 
TaxTMI 
2008 (6) TMI 592
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....ates to computation of export turnover by reducing certain expenses along with the above ground as agitated by the assessee with respect to granting deduction of the expenses so disallowed from the export turnover as well from the total turnover. Ground have been raised for considering the unrealized export profits and the computation of profit of the undertaking for deduction under section 10A of the Act along with the brought forward business losses and unabsorbed depreciation, as subsidiary issues. 3. The assessee company is in the business of software and information system and has Non-STPI Unit with its head office in Bangalore consisting of four foreign branches. The STPI unit is located in Bangalore in India. The assessee had file....
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....ere should be consistency in the method of computation followed for computing the eligible exemption under section 10A. As the profits of the Non-STPI unit cannot be clubbed to the STPI profit, going by the same principle the loss of the Non-STPI Unit cannot be set off against the profit of the STPI Unit. He pointed out that this issue stands squarely covered by the decision of the ITAT, Bangalore Bench in the case of SCT Software Solutions (India) Pvt. Ltd. (ITA No.1014/Bang/04) for the Assessment Year 2002-03 which again was similarly considered by the decision in the case of Yokogawa India Ltd. reported in 13 SOT 470 as well as 111 TTJ 548. The learned counsel has filed compilation thereof. 5. On the next issue, the learned counsel po....
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....rding unrealized export proceeds, he preferred not to press the same in view of the remedy available to the assessee under section 155 as brought into statute. With respect to ground Nos. 5 and 6, he fairly admitted that the issue of setting off of loss by Non-STPI Unit with the profit of STPI Unit prior to computing deduction under section 10A once stands decided in favour of the assessee, the grounds for making adjustment for the computation of profit for deduction under section 10A and for brought forward business loss and unabsorbed depreciation for the Non-STPI Unit become infructuous to that extent. 6. The learned Departmental Representative supported the order of the learned CIT(A) and the Assessing Officer for his part of submiss....
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....e inclined to hold that the law is very clear regarding incomes not taxable under Chapter III in the Income Tax Act which only relates to incomes forming part of total income for consideration in the spirit of the legislation has to be considered when the assessee has been able to establish the income of the STPI Unit as was available to the Assessing Officer remains undisputed. This ground by the assessee, therefore, stands allowed as covered by the decision of the ITAT, Bangalore Bench on similar facts and circumstances. 8. With respect to the ground relating to expenditure reduced from the export turnover and the expenditure not to be reduced from the total turnover for the purpose of quantifying the deduction under section 10A on acc....