TaxTMI 
TaxTMI 
2011 (1) TMI 1481
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....o the same assessee, these appeals are disposed off by this common order for the sake of convenience and brevity. 3. In assessee's appeals, identical grounds are raised except for variance in figures, hence, the grounds relating to asst. year 2005-06 are reproduced below:- i) On the facts and circumstances of the case, the learned CIT(A) has erred in holding that Rs. 10,63,878/- being leased line charges paid to Videsh Sanchar Nigam Ltd. are in the nature of expenditure for delivery or export of publication material. ii) Without prejudice to ground 1, on the facts and circumstances of the case, the learned CIT(A) has legally erred in ignoring the fact that the leased line charges of Rs. 10,63,878/- did not form part....
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.... to exemption u/s 10A of the Income Tax Act, 1961. During the previous year relevant to asst. year 2005-06, the assessee filed its return of income declaring total income of Rs. 4,43,836/- after claiming deduction u/s 10B of the Act amounting to Rs. 3,40,72,530/-. Assessment was completed u/s 143(3) vide order dated 26/12/2007 wherein deduction u/s 10A of the Act was reduced. The Assessing Officer made reduction in the export turnover for the purpose of computing the qualifying amount of deduction u/s 10A of the Act, 1961. The amounts reduced from the export turnover for the purpose of computation of deduction u/s 10A of the Act are as follows:- a) Rs. 10,63,878/- on account of lease line charges which according to the Assessing Of....
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.... of M/s Jaipuria Silk Mills (P) Ltd. 7.1 Regarding the second issue, namely, reduction of export turnover while computing the deduction u/s 10A/10B of the Act on account of unrealized export remittance within the stipulated time, the CIT(A) held in favour of the assessee by observing thus:- "In view of the above facts that now the appellant had received post facto approval of R.B.I. to receive the CFE not realized within the stipulated time, post facto approval being an approval in the eye of law, cannot be the reason to deny any benefit to the appellant. Therefore, Assessing Officer is directed to treat such realization as Export Turnover and re-compute the deduction u/s 10B of the I T Act". 7.2 The first issue, for which th....
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....he Tribunal by its order dated 12.4.2010, in ITA No.1112/Bang/2009. No contrary decision has been brought to our notice. The relevant finding of the Tribunal in M/s Jaipuria Silk Mills (P) Ltd. is reproduced below:- "8. We have heard the rival submission and perused the material placed on record. The issue in question stands covered directly in favour of the assessee by the order of the Tribunal in assessee's own case for the asst.year 2005-06 (ITA No.406/Bang/2008 dated 10.7.2009), which in turn, followed the decision of the Special Bench cited supra. The relevant portion of the Tribunal's order in assessee's own case cited supra reads as follows:- "We have heard the rival contentions and perused the material ....
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.... 80HHE and 80HHF provide for a formula for calculating the deduction which is identical with the formula prescribed by section 10B, it would be incongruous to interpret section 10B in a manner different from those two sections merely because there is no definition of "total turnover" in that section. "Export turnover" as defined in these sections excludes freight, telecom charges or insurance attributable to the delivery of the computer software outside India or expenses, if any, incurred in foreign exchange in providing technical services outside India. Thus statutorily parity is maintained between export turnover and total turnover in these sections. There is no reason why such parity cannot be maintained between export turnover and total....
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....s case because gross receipt is used for services rendered by business enterprise or for professional income and word 'turnover' for sales effected or for business income. The assessee's business is wholly of export of manufactured silk fabric and hence word 'gross receipt' cannot be applied to export turnover here. 11. For the above said reasons, we reverse the order of the authorities below and direct the Assessing Officer to exclude from the export turnover as well as from the total turnover a sum of Rs. 96,39,523/- and Rs. 2,43,763/- being freight and insurance expenses respectively, while calculating deduction u/s 10B of the Act". 10.1 In the light of the above order of the Tribunal, alternative ground, ....