2017 (3) TMI 1850

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....d the following grounds of appeal: Assessment year 2009-10:  3. Briefly facts of the case are as under: The assessee is a company duly incorporated under the provisions of the Companies Act,1956. It is engaged in the business of manufacturing and export of all types of surgical sutures like absorbable sutures and non-absorbable sutures. Return of income for the assessment year 2009-10 was filed on 30/09/2009 declaring total income of Rs. 9,48,36,690/- claiming a deduction of Rs. 9,48,24,379/- u/s 10B of the Income-tax Act,1961 ['the Act' for short]. The return of income was taken up for scrutiny assessment after issuing notice u/s 143(2) and the assessment was completed by the AO at total income of Rs. 9,80,65,487/-. The disparity b....

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.... revolves around the applicability of the provisions of sub-section (3) of section 10B of the Act. The said section is reproduced below: "10B. (3) This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf. Explanation 1.-For the purposes of this sub-section, the expression "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating p....

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....ecision of the Hon'ble jurisdictional High Court we direct that expenses incurred in foreign exchange towards insurance, travelling and communication are to be reduced both from export turnover as well as total turnover. Therefore, the grounds of appeal filed by the assessee in this regard are allowed. 8. In the result, the appeal filed by the assessee for assessment year 2009-10 is partly allowed. 9. The issues raised in the grounds of appeal in assessment year 2010-11 are identical to the one raised in assessment year 2009-10. Since we have decided the issue of deemed export against the assessee in its appeal i.e. ITA No.872/Bang/2013 for assessment year 2009-10, for the same reasons, grounds of appeal No.2, 3, 4 5 and 6 raised ....

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....g, insurance and communication. The learned Commissioner of Income Tax [Appeals] erred in not appreciating that benefit of deduction under section 10 B of the Act is available to deemed exports also under the facts and circumstances of the case. The Commissioner of Income Tax [Appeals] has erred in not appreciating that the expenses disallowed by the learned assessing officer amounting to Rs. 21,50,562/- are administrative in nature and not amenable and no relatable for the purposes of computing deduction under section 10 B from the export turnover under the facts and circumstances of the case. Without Prejudice, if the sum of Rs.21,50,562/- is indeed held to be not part of Export Turnover, the same ought to....

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.... of benefit under section 10 B of the Act at Rs.8,32,07,050/- by the learned assessing officer as against Rs. 8,79,18,006/- claimed by the appellant in its return of income is incorrect on the facts and circumstances of the case and not in accordance with the provisions of the Act. The Commissioner of Income Tax [Appeals] is not justified in confirming the Disallowance of Rs.39,27,202/- being the value of 'deemed exports', from the amount of export turnover. The learned Commissioner of Income Tax [Appeals] erred in not appreciating that benefit of deduction under section 10 B of the Act is available to deemed exports also under the facts and circumstances of the case. Without prejudice to the right to seek waiv....