9911796707
TMI Blog2012 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... utside India, or expenses if any incurred in foreign exchange in providing the technical service outside India should not be included - in favour of the assessee - ITA No.436/Bang/2011 - - - Dated:- 11-6-2011 - SHRI N.K. SAINI, AND SMT. P. MADHAVI DEVI, JJ. Appellant by : Ms. Kavitha, P., C.A. Respondent by : Dr. P.V. Pradeep Kumar, Jt.CIT (DR) O R D E R Per N.K. Saini, Accountant Member This is an appeal by the assessee against the order dated 13.01.2011 of the CIT(Appeals)-I, Bangalore. 2. The only grievance of the assessee in this appeal relates to the confirmation of the action of the Assessing Officer in reducing the freight charges from the export turnover only and not from the total turnover, while allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the S.10B(1) of the I.T. Act through Finance Act, 2000 w.e.f. 1-4-2001 was to collect some tax from even a 100% EOU which is possible only when the numerator, i.e. E.T. and denominator T.T. are not same figures. This is possible when the E.T. explained in Explanation 2(iii) of Section 10B is given a strict and literal interpretation better termed as Net E.T. consisting of both positive and negative elements of the definition. It is also pointed out therein that intentionally the legislature has not provided any definition of T.T. in that Section which has to be considered as the gross sale proceeds from export when the 100% EOU has not domestic sales at all. In that case, I have also given several examples in which case, T.T. is always ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total turnover in case of a 100% EOU having no domestic sales is that sale proceeds in CFE has to be reduced by freight/communication charges/insurance attributable to export and also expenditure incurred in foreign currency for technical services outside India to make it the Export Turnover i.e, numerator, while no such reductions shall be made in case of Total turnover because the concept of expenditure is foreign and alien and hence not incorporated in the word Total Turnover/Gross Receipt/Total sales. Following the same reasoning the issue here also is decided against the appellant. Now the assessee is in appeal. 5. During the course of hearing, the ld. counsel for the assessee at the very outset stated that this issue is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be excluded from the total turnover for the same are reduced from export turnover. 2. This Rs.uestion had come up for consideration before this Court in the case of COMMISSIONER OF INCOME TAX vs. TATA ELXSI LTD., in ITA No.70/2009 and other connected cases disposed off on 30th August, 2011. After referring to various judgments and referring to various expenses it was held that while computing the consideration received from such export turnover, the expenses incurred towards freight, telecommunication charges, or insurance attributable to the delivery of the articles or things of computer software outside India, or expenses if any incurred in foreign exchange in providing the technical service outside India should not be included. The ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
