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16. The learned counsel for the Revenue urged that since the assessee-unit has to manufacture the articles or things or computer software in question, only the export of goods or articles or things or computer software manufactured by the assessee-unit itself should be considered for the purpose of computing the deduction u/s.10B of the Act and the "Deemed Export" of such goods or articles through a third party cannot be considered in this regard.

Date of Judgment 23-07-2018 I.T.A.No.77 /2016 Pr.Commissioner of Income Tax & Anr., Vs. M/s. GE Medical Systems India Pvt. Ltd.,

(ii) Secondly, the Division Bench of this Court in M/s.Tata Elxsi's case (supra) has already dealt with this aspect of the matter that even the deemed export of the goods sold by a unit covered likewise u/s.10A of the Act, which also incorporates the similar sub-section(2) as contained in S.10B of the Act, that while such goods are sold within India to another STP unit, which as per the Exim Policy, the Union of India treats as 'Deemed Export' and if a similarly situated assessee in a Free Trade Zone has been held entitled to the benefit of deduction u/s.10A, in respect of the exports made through a third party or another units located in India within STP only, with which reason, we respectfully agree, there is no reason to exclude such 'Deemed Export' being taken into account as 'Export Turnover' for the purpose of S.10B of the Act also.

21. As held by the Division Bench of this Court in M/s.Tata Elxsi's case, the purpose of giving these deductions in these special provisions is to encourage exports and fetch foreign currency in terms of Exim Policy propounded and announced by the Union of India. The 'Deemed Export' by the assessee Undertaking even through a third party who has exported such goods to a Foreign country and has fetched Foreign Currency for India, still remains a 'Deemed Export' in the hands of the assessee undertaking also. If the Parliament intended to put any restrictive meaning for curtailing the said deduction, such words could be employed in sub-section(1) itself, which could have excluded 'Deemed Export' from the ambit and scope of word 'export' employed in sub-section(1) of S.10B of the Act. The Explanation defining 'Export Turnover' in both these provisions does not make any such distinction between the 'Direct Export' and 'Deemed Export'.

22. For a harmonious reading of these provisions of the Act which are undoubtedly beneficial provisions, the word 'export' read with the background of Exim Policy of Union of India would certainly include 'Deemed Export' also within the Date of Judgment 23-07-2018 I.T.A.No.77 /2016 Pr.Commissioner of Income Tax & Anr., Vs. M/s. GE Medical Systems India Pvt. Ltd., ambit and scope of the 'Export Turnover' as explained in Explanation-2 of sub-section (9A) of the said S.10B of the Act.