INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Computation of total turnover - Treatment of foreign currency expenses excluded from export turnover -

Assessee claimed deduction under section 10A. AO re-computed amount deductible after excluding expenses incurred in foreign currency ouside India from export turnover, however, without reducing the same from total turnover.Held: Total turnover is sum total of domestic turnover and export turnover. Therefore, if an amount is reduced from export turnover, then total turnover also goes down by the same amount automatically. In view of this foreign currency expenses as reduced from export turnover had to be excluded from total turnover as well.

Followed:Tata Elxsi Ltd. (2011) 349 ITR 98 (Karn) : 2011 TaxPub(DT) 1960 (Karn-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 10A

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