Held that the profit of the export-oriented unit before tax was Rs. 26.11 crores on turnover of approximately 131.97 crores which, in percentage terms was around 19.78 per cent. When compared to the previous year\u2019s figures, there was not much material deviation and the claim to deduction under section\u00a010B\u00a0of the\u00a0Income-tax Act, 1961\u00a0in the assessment year 2006-07 was accepted. The senior management salaries had been allocated by the Assessing Officer in the ratio of turnover of export-oriented and non-export-oriented units as against the assessee\u2019s allocation of 5 per cent. of total expenses. In the assessment year 2006-07, the Assessing Officer was not convinced with the allocation and in the assessment year 2007-08, the assessee itself had allocated the senior management salary cost in the ratio of sales of export-oriented units and non-export-oriented units. Therefore, there was no merit in the action of the Assessing Officer in reducing the claim of deduction under section\u00a010B\u00a0of the Act. There was no reason to interfere with the findings of the Commissioner (Appeals). (AY.2004-05 to 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 10B: Export oriented undertakings-Senior management salaries had been allocated in ratio of turnover of export-oriented units and other units. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44740","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bDC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44740"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44740\/revisions"}],"predecessor-version":[{"id":44741,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44740\/revisions\/44741"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}