9911796707
|
Home
Issues involved: Interpretation of provisions u/s 10A of the IT Act, 1961 regarding foreign travel expenses for computing deduction.
Summary: The appeal was filed against the order of CIT, Bangalore for the assessment year 2004-05 concerning foreign travel expenses for the purpose of computing deduction u/s 10A of the IT Act, 1961. The Tribunal decided in favor of the assessee based on previous decisions and interpretations of relevant provisions. It was held that expenditure on foreign travel for software delivery should be reduced from export turnover and total turnover while computing deduction u/s 10A, following the principles established in various cases. The Tribunal emphasized that the term "total turnover" for sec.10A purposes should be understood in the same manner as for section 80HHE, and any expenses excluded from export turnover should also be excluded from total turnover. The AO was directed to exclude foreign travel expenses from total turnover for computing the deduction u/s 10A. The appeal of the assessee was allowed, and the order was pronounced in the open Court on the date of hearing.
|
