2019 (3) TMI 1153

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....t in directing the assessing officer to recompute the income in the light of the decision of the Special Bench in the case of Sak Soft by excluding the freight and insurance expenses both from the Export turnover and also from the total turnover while computing deduction under Section 10A which is contrary to the definition of Export Turnover given in Explanation 2(IV)? ii) Whether the Tribunal was right in holding that the expenses incurred in foreign currency relating to telecommunication, travel and conveyance are to be excluded both from the Export turnover and from the total turnover while computing deduction under Section 10A especially when the Section clearly states that the same is to be excluded only from the Export turno....

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....present case in hand deals with Section 10A of the Act. 4. A mere perusal of sub-section of 10A(2)(i)(c) of the Act quoted below would reveal that brought forward loss of any relevant Assessment Year before 1st April 2001 is not allowed to be carried forward and set off while computing the total income for determining the deduction under Section 10A of the Act. 5. Section 10A(2)(i)(c) reads as under:- "Special provision in respect of newly established undertakings in free trade zone, etc. 10A (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years be....

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....ses in all the preceding years have been absorbed first and deduction under Section 10A was granted next. Hence, the assessee claim of setting of the brought forward loses for the year is being rejected. 7. Assessee has received Interest Income of Rs. 1,63,00,810/-. Since this income is not derived from the export of computer software, the same is excluded from the Export Profit of the undertaking in computing deduction under Section 10A. The assessee had itself in the computation excluded it from the profit of business and had subjected it to taxation in deviation to the claim made in the yesteryears. Hence, there is no reason to further interfere on this issue." 7. It is clear from the above that there was no brought forward l....