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Siddharth (Consultant )     24 June 2008

Citation required

 Dear All,

I need the citation of the below case law which has been decided by the Bangalore Tribunal. I have searched for citation from Lexsite/ BCAS/ ITatonline etc. but cant trace it.

If any one of u have the citation, pls let me know.

Thnks in Advance.

Regards

Siddharth

Sales from one STP to another is not deemed export for Income Tax deductions : ITAT

BANGALORE, JAN 22, 2008: SEVERAL issues decided in this appeal before the Tribunal.

1. Carry forward export loss and export profit eligible for deduction for the year are to be considered together for the purposes of ascertaining the income included in the gross total income.


In the return of income, the assessee claimed deduction u/s 80HHE before setting off of brought forward business loss and unabsorbed depreciation from the gross total income. Before the Assessing Officer it was contended that section 80HHE is the self-contained section and contains the definition of profits of the business, export turnover, total turnover etc. Section 80AB refers to the nature of income entitled for deduction u/s VIA and include in the gross total income. Section 80HHE does not refer to any income included in the gross total income.

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Sales from one STP to another is not deemed export for Income Tax deductions.

Sale of software by one STP to another STP within the country would be treated as deemed export only for the purpose of duty draw back and exempt from terminal excise duty. sec. 10A, with relevant proviso, stood during the relevant time itself provides that when domestic sales of STP unit do not exceed 25%, such sale should be deemed to be the profits and gains derived from the export of such articles or things or computer software. Thus the provisions of sec. 10A as it stood specifically provide how much benefit to be given to the assessee if sales to another STP when not exceeded 25% of the total products.


Further, from the perusal of the Exim Policy (chapter 6), it is seen that whatever benefit given should be as per the provisions of sections 10A and 10B of the Income Tax Act. Apart from the benefit conferred, nothing has been indicated in respect of any deemed export when the issue considered under the I T Act. The Exim Policy obviously does not include in respect of benefit to be given under I T Act other than one referred to under Chapter 6.12(a).

Please do the needful at the earliest.



Learning

 1 Replies

Guest (n/a)     15 August 2008

What kind of writing requires citations?


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