2015 (12) TMI 1849 - AT - Income Tax

Computation of deductio u/s 10A - Assessee incurred sales commission in foreign currency during the previous year relevant to the assessment year 2006-07 - AO excluded it from the export turnover, however, not reduced from the total turnover - CIT(A) by following the decision of ITO vs Sak Soft Ltd 2009 (3) TMI 243 - ITAT MADRAS-D observed that for the purpose of applying the formula u/s 10A, the sales commission expenses which was incurred in foreign currency for providing technical services outside India are to be excluded both from export turnover as well as total turnover - HELD THAT - Since the issue is covered in favour of the assessee by the decision of the Special Bench in Sak Soft Ltd (supra) and the CIT(A) has followed the same, we do not find any infirmity in the order of the CIT(A). Accordingly, the same is confirmed. - Decided against revenue.

Summary

The Appellate Tribunal ITAT Chennai confirmed the Commissioner of Income-tax's decision regarding exclusion of sales commission expenses from export turnover and total turnover for assessment years 2006-07, 2009-10, and 2010-11, based on the Special Bench decision in the case of ITO vs Sak Soft Ltd. The Revenue's appeals were dismissed.