Tribunal held that interest income from short term fixed deposits cannot be classified profits of the business of undertaking hence not eligible for deduction. Expenditure incurred is reimbursed would be part of qualifying amount. Sale of fixed asset is included in qualifying amount which is not to be reduced for the purpose of qualifying amount. Sale of scrap for which expenses booked is part of qualifying amount. Provision for leave encashment, suo moto adjustment in profit is allowable. Amount of foreign exchange should be reduced from export turn over or total turnover. (AY. 2010-11)
Barclays Shared Services (P) Ltd. v. ACIT (2021) 202 DTR 185//(2022) 216 TTJ 228 (Pune)(Trib.)
S. 10A : Free trade zone-Interest income from short term fixed deposits-Cannot be classified profits of the business of undertaking-Not eligible for deduction-Expenditure incurred is reimbursed would be part of qualifying amount-Sale of fixed asset is included in qualifying amount-Not to be reduced for the purpose of qualifying amount-Sale of scrap-Expenses booked-Part of qualifying amount-Provision for leave encashment-Suo moto adjustment-Adjustment in profit is allowable-Amount of foreign exchange should be reduced from export turn over or total turnover. [S. 10AA]