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TMI Blog2012 (7) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... le to export which is to be reduced from export turnover, should also be reduced from total turnover while working out the deduction u/s 10A of the Act. Assessing Officer is directed to recompute deduction u/s 10A. See ITO vs Sak Soft lTd (2009 (3) TMI 243 (Tri)) - Decided in favor of assessee. - I.T. A. No.6082/Del/2010 - - - Dated:- 28-6-2012 - SHRI RAJPAL YADAV, AND SHRI K.D. RANJAN, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l vide order dated 6th January, 2012. 3. The appeal came up for hearing finally on 25th April, 2012. Shri Neeraj Jain, CA submitted that for the purpose of deduction u/s 10A communication expenses to the extent of Rs.24,06,287/- and insurance expenses to the extent of Rs.3,32,329/- are to be reduced from export turnover for computation in terms of clause (iv) of Explanation 2 to section 10A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- by reducing the same by the expenditure of Rs.27,38,616/- being the communication expenses and insurance expenses attributable to the delivery of software. While doing so the AO has relied on the Explanation 2(iv) of sec. 10A of the I.T. Act which specifically states that export turnover shall not include freight, telecommunication charges or insurance attributable to the delivery of article or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee before us has stated that the amount which is to be reduced from the export turnover should also be reduced from the total turnover relying on various decisions. ITAT Special Bench in the case of ITO vs. Sak Soft Ltd., 313 ITR (AT) 353 (Chennai)(SB) has held that expenses on freight, telecommunication charges, or insurance attributable to the delivery of the articles or things or computer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rected to recompute deduction u/s 10A after reducing the export turnover and total turnover by the amount attributable to export of goods or articles or computer software and determine deduction u/s 10A of the Act accordingly. The AO is directed accordingly. 6. In the result, the appeal filed by the assessee is allowed in the terms mentioned as above. 7. This decision is pronounced in the Open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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