Case Law Details
Polybond India Pvt. Ltd. Vs JCIT (ITAT Pune)
It is seen that the assessee claimed deduction u/s 10B of the Act. In the computation of deduction, the assessee inter alia, excluded DEPB entitlement of Rs.48.28 lakhs from the `export turnover‟ which amount was also excluded from the amount of `total turnover’. The authorities below have opined that though the assessee was correct in excluding DEPB benefit from the `export turnover‟ but ought to have retained it in the `total turnover‟. In our considered opinion, this proposition is ill-founded. `Total turnover‟ comprises of `export turnover‟ and domestic turnover. If a particular constituent of `export turnover‟ is not rightly includible in it, that obviously ceases to be a part of export turnover and hence cannot be included in the amount of `total turnover’ because it is the amount of export turnover, which forms a part of total turnover. The Hon’ble Supreme Court in CIT vs. HCL Technologies (2018) 404 ITR 719 (SC) has held to this extent in the context of section 10A. We, therefore, overturn the order of the ld. CIT(A) on this score.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the assessee is directed against the order passed by the CIT(A), Pune-3 on 10-11-2017 in relation to the assessment year 2011-12
2. The first issue is against the inclusion of DEPB entitlement of Rs.48,28,152 in `total turnover‟ in the computation of deduction u/s 10B of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟).
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