9911796707
TMI Blog2013 (12) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... admitting total income of Rs. 30,11,432/-. The Assessing Officer completed the assessment u/s 143(4) of the Act determining the total income of the assessee at Rs. 40,82,249/-. While doing so, the Assessing Officer disallowed the assessee's claim of exemption u/s 10A of the Act on account of internet charges of Rs. 12,59,538/and telephone charges of Rs. 1,51,655/-. The Assessing Officer also disallowed the depreciation claim of the assessee company. 3. On appeal, the CIT(A) following the decision of the ITAT, Hyderabad in case of Patni Telecom Pvt. Ltd. Vs. IT) [2008] 22 SOT 26 (Hyd) held that the expenditure incurred toward internet charges and telephone charges for delivery of software should be excluded from the export turnover and fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... phold the order of the CIT(A) in holding that the expenditure incurred towards internet charges and telephone charges for delivery of software should be excluded from the export turnover and from total turnover. Accordingly, the ground raised by the revenue in this regard is dismissed. 8. In the assessee's appeal, the assessee has raised 4 grounds of appeal, the sum and substance of which is regarding disallowance of depreciation on additions made to fixed assets. In addition, the assessee has raised the following additional grounds: "The CIT(A) ought to have appreciated the fact that recomputed business profit after making the additions for disallowances will qualify for exemption u/s 10A of the Act. In this connectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed excess depreciation. 11. The learned DR, on the other hand, relied upon the orders of the authorities below. 12. We have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorities below. The CIT(A) has observed that it is seen from the assessment order that the major portion of the depreciation amounting to Rs. 4,89,074/has been disallowed because the assessee did not present adequate proof regarding the additions to the fixed assets. The assessee's counsel submitted that enough time was not given to the assessee to produce sufficient evidence and the same has been mentioned in the written submissions also. In these circumstances, we deem it fit and proper to remit the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,000/100% depreciation claimed by the assessee is to be allowed. The Assessing Officer is directed accordingly. This ground is allowed. 16. As regards the additional ground raised by the assessee that The CIT(A) ought to have appreciated the fact that recomputed business profit after making the additions for disallowances will qualify for exemption u/s 10A of the Act, we find that this issue is squarely covered by the decision of the coordinate bench of Tribunal, Hyderabad in case of M/s Bartronics India Ltd., in ITA Nos.2188/Hyd/2011 and 2189/Hyd/2011 for AY 2006-07 and 2007-08 vide order dated 31/05/2012 wherein it was held that the Assessing Officer is directed to consider the additions made while calculating deduction u/s 10B. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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