2008 (9) TMI 919 - AT - Income Tax

Summary

Issues Involved:
The judgment involves the exclusion of overseas allowances and expenses from export turnover, disallowance of claim on export proceeds not received during the year, and the applicability of provisions of sub-clause (iv) of Explanation 2 to sec.10A(8) u/s 10A of the Income Tax Act, 1961.

Exclusion of Overseas Allowances and Expenses from Export Turnover:
The assessee contested the exclusion of overseas allowances and expenses from the export turnover for assessment years 2002-03, 2001-02, and 2003-04. The Assessing Officer disallowed these expenses u/s 10A, holding them as expenses incurred in foreign exchange in providing technical services outside India. The CIT(A) upheld this disallowance. The Tribunal considered relevant precedents and decided to follow decisions that supported the assessee's position. It was noted that if expenses are excluded from export turnover, they should also be excluded from total turnover. The Tribunal directed accordingly, citing specific cases to support its decision.

Disallowance of Claim on Export Proceeds:
Another issue in assessment years 2002-03 and 2003-04 was the disallowance of a claim due to export proceeds not being received during the year. However, this issue was not pursued during the hearing, leading to its rejection.

Conclusion:
The Tribunal partially allowed the assessee's appeals for assessment years 2002-03 and 2003-04, while fully allowing the appeal for assessment year 2001-02. The order was pronounced on 26-9-2008.