INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Computation - Expenses reduced from export turnover whether to be reduced from total turnover -

Issue was as regards computing quantum of deduction under section 10A. Held: Following Tata Elxsi Ltd.[ (2011) 349 ITR 89 (Karn) : 2011 TaxPub(DT) 1960 (Karn-HC)], total turnover is sum total of domestic turnover and export turnover and therefore, if an amount is reduced from export turnover, then the total turnover also goes down automatically by the same amount. Thus, expenses reduced from export turnover should be reduced from total turnover also for the purpose of computing deduction allowable to the assessee under section 10A.

Followed:CIT v. Tata Elxsi Ltd. (2011) 349 ITR 89 (Karn) : 2011 TaxPub(DT) 1960 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : A.Ys. 2010-11 and 2011-12

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