While computing the direct cost attributable to export, the freight and insurance should be excluded for arriving at export profits

In a repreive to the assessee, the Bombay High Court has ruled that while computing the direct cost attributable to export, the freight and insurance should be excluded for arriving at export profits. The objective of the exclusion of freight and insurance is to ensure that the benefit of the deduction under provision of the Income Tax Act is confined to profits derived from export, said the high court turning down the plea of the revenue department. While defining the expression ‘export turnover’, Parliament has evinced an intent to exclude freight and insurance attributable to the transp...