2019 (4) TMI 1439

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....E of the IT Act was being claimed and also on the method of computation of deduction under section 10A of the IT Act, 1961?" 2] Before adverting to this question, we may record that the revenue's appeal contains several other questions concerning transfer pricing adjustments. However, it is an agreed position between the Advocates of both sides, that in case of the present assessee, between Government of India and that of United States of America, a Mutually Agreed Procedure has been followed and final agreement is arrived at. In view of this development, these additional questions have become academic in nature and we have, therefore, not examined the same. 3] The sole surviving question arises in following factual background. One of....

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....n, the revenue also questioned the computation of such claim arguing that the freight and insurance expenditure which is to be deleted from the export turnover, cannot be excluded for the purpose of computing the total turnover. 6] Section 80HHE of the Act pertains to deduction in respect of profits from export of computer software etc. Sub-section (5) of section 80 HHE provides that where deduction under said section is claimed and allowed in respect of the profits of the business referred in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such profits under any other provision of the Act for the same or any other assessment year. What subsection (5) of section 80 HHE thus prohibits is the claim of ....

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....e came to be covered for deduction under section 10A. The revenue contends that this benefit would not be available to an industry which was already existing and engaged in such activity. However, the interpretation of the revenue would render the first proviso to subsection (1) of section 10A wholly redundant. This proviso reads as under:- "10A(1) ..... Provided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to deduction referred to in this subsection only for the unexpired period of the....