TaxTMI 
TaxTMI 
2021 (5) TMI 509
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....19, wherein in paragraph 6 there is an observation that inadvertently the corporate tax issues were not adjudicated while passing order dated 11/12/2017. Accordingly the order dated 11/12/2017 was recalled for the limited purposes to adjudicate following grounds: "II.Corporate Tax "1.1 'Other income' not considered as part of eligible business profits' while computing section 10A deduction 1.1. The Ld. AO erred in re-computing the deduction under section 1 OA of the Act after reducing other income of Rs. 37,56,066 from the profits of the undertaking eligible for deduction under section 1 OA of the Act without appreciating the fact that other income consisting of house rent deposits, claim in respect of penalty amount receivabl....
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....e appreciated that if foreign exchange loss is reduced from the export turnover, foreign exchange gain should be added to the export turnover. 2.4. Notwithstanding and without prejudice to the above, should the foreign exchange gain of Rs. 95,81,206 be adjusted from the export turnover, the same should be adjusted with both the export turnover and total turnover in arriving at the deduction under section 10A of the Act. 3. Adjustment of unbilled revenue of Rs. 75,51,873. 3.1. The Ld. AU has erred in considering that basis Form 56F, an amount of R6,13,387 has been realized out of export proceeds of Rs. 62,33,89,825/-. The Ld. AU ought to have appreciated that entire amount has been realized out of the export proceeds of Rs. 62,33,89,82....
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....her documents, facts and evidence before or at the time of hearing of this appeal. For the above and any other grounds which may be raised at the time of hearing, it is prayed that necessary relief may be provided." II. Corporate tax: 2. Ground No.1: This issue has been raised by assessee as the authorities below upheld exclusion of other income, while computing deduction under section 10 A of the Act. 3. The Ld.AR submitted that assessee is an 100%/EOU, and therefore all income/expenses are closely related and have a direct nexus to the business of the assessee. It has been submitted that, the Ld.AO disregarded the other income for computation of 10A deduction on the premise that other income did not form part of the direct income fr....
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....essment year 2006-07 in ITA No.1261/B/2010 by order dated 31/12/2014 in support of argument that there is no nexus between other income and business income, and therefore it cannot be considered as part of eligible to be considered for computing deduction under section 10A of the Act. 7. We have perused submissions advanced by both sides in light of records placed before us. We have perused the order relied by the Ld.CIT.DR. She placed specific reference to para 7.3 of the order wherein interest income earned on fixed deposits made for obtaining credit facility was considered by assessee to be eligible for deduction under section 10A of the Act. This Tribunal while considering the issue upheld the computation of 10A deduction made by asses....
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....e adjustment of unbilled revenue amounting to Rs. 75,51,873/-. 12.1 The Ld.AR submitted that Ld.AO reduced the said sum towards unrealised export sales from export turnover for computing 10 A deduction, but did not reduce the same from total turnover. On the objections being raised before the DRP, the DRP directed the Ld. AO to verify the same, but Ld.AO failed to verify as per DRP directions. It is also submitted that, the Ld.AO further erred in reducing the amount of unbilled revenue twice while computing the deduction. 13. The Ld.AR submitted that, the unbilled revenue represents work done by the assessee, which could not be built to the client, as the same was pending acceptance and approval by the client as per the agreed terms. He p....