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TMI Blog2012 (4) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... ers including the assessment order that the agent, who rendered service and to whom payment is made by the assessee, has rendered any technical or professional service answering the definition of "technical service" - no deduction is called for in terms of Explanation 2(iii) of sub Section (9A) of Section 10B for the purpose of computation of deduction under sub Section (4) of Section 10B - ITA.No. 502 of 2009 - - - Dated:- 23-2-2012 - MR.JUSTICE C.N.RAMACHANDRAN NAIR, MR. JUSTICE BABU MATHEW P.JOSEPH, JJ. For Appellant: SRI.JOSE JOSEPH, SC, FOR INCOME TAX For Respondent: SRI.T.M.SREEDHARAN, SMT.C.K.SHERIN, SRI.V.P.NARAYANAN J U D G M E N T Ramachandran Nair, J. The sole question raised in the connected appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years from 2004-05 to 2006-07. 3. We have heard learned Senior Standing Counsel Shri.P.K.R.Menon appearing for the Revenue and learned Senior counsel Shri.T.M.Sreedharan appearing for the assessee. 4. Since the question raised is only on the scope of deduction under Section 10B(4), we extract hereunder the said Section with the definition clause of "Export Turnover" contained in Clause (iii) of Explanation 2 to Section 10B(9A) of the Act. "10B(4) : For the purposes of sub-section (1), the profits derived from export of articles or things or computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under sub Section (4) of Section 10B. 6. Learned Senior counsel appearing for the assessee, on the other hand, contended that the commission payment is made only to the agent abroad for canvassing orders and he is not rendering any technical or professional service. According to him, the commission paid is only around 5% of export turnover. 7. After hearing both sides and on going through the orders, we notice that the assessee has received the entire sale proceeds in converted foreign exchange which constitute export turnover under the main part of the definition clause above stated. However, exclusion is provided from the amount so received in convertible foreign exchange of so much of the expenditure incurred for technical serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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