9911796707
TMI Blog2015 (9) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... see deployed abroad for development of, testing, installation and monitoring of software outside India, after verification of the exact nature of expenditure while computing deduction u/s 10A of the Act. - Decided in favour of assessee. - ITA Nos.1645 & 1646/Bang/2012, ITA No.176/Bang/2013, Cross Objn.No.72/Bang/2013 - - - Dated:- 4-3-2015 - Smt. P. Madhavi devi And Shri Jason P.Boaz JJ. For the Appellant : Shri Sudheendra, CA. For the Respondent : Dr.K.Shankar Prasad, JCIT(DR) ORDER Per Smt. P.Madhavi Devi, JM: All these appeals and the cross-objections are fixed for hearing on account of one of the issues being remanded to the file of the Tribunal for re-consideration. 2. The Hon ble High Court of Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered by this Tribunal in the case of Softtek India Pvt. Ltd. vs. ITO in IT(TP)A No.222/Bang/2014 dated 31/10/2014 wherein, after considering the judgment of the Hon ble High Court in the case of CIT vs. Motor Industries Co. Ltd.in ITA No.1172/2006 dated 13/06/2014 as well as the decision of the Hon ble High Court of Karnataka in the case of CIT vs. Elxsi Ltd. in ITA No.660 of 2008 dated 16/9/2014 has held that the assessee is eligible for exemption u/s 10A of the Act if it is in the business of manufacture and export of computer software and the travelling of the employees of the assessee is the integral part of the software development and therefore it cannot be reduced or excluded from the export turnover for computation of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. If the assessee is engaged in the business of providing technical services outside India in connection with the development or production of computer software then expenses if any incurred in foreign exchange in providing technical services outside India is liable to be deducted out of export turnover. The said provision has no application in the case of export out of India of computer software or its transmission from India to a place outside India by any means. The law makes a distinction between technical services rendered in connection with export of computer software and export of technical services for the purpose of development or production of computer software outside India. If the technical services rendered by the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia. The software Engineers deputed abroad who among other things have to do testing, installation and monitoring of software supplied to the client. Though the said services are technical in nature it does not fall within clause (ii) of subsection (1) of 80HHE of the Act, of providing technical services outside India in connection with the development or production of computer software. It falls under sub-clause (i) of sub section (1) section 80HHE of the Act. Therefore, the said expenditure cannot be excluded in computing export turnover. In that view of the matter we do not see any merit in this appeal. Accordingly, the said question of law is answered in favour of the assessee and against the revenue. Ordered accordingly. This deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6--07 is treated as allowed. Similarly, ground No.2 in the assessee s cross-objection No.72/Bang/2013 in ITA No.176/Bang/2013 is also on the same issue and therefore, the ground No.2 in the assessee s cross objection is allowed. 4. As regards the revenue s appeal in ITA No.176/Bang/2013 for the assessment year 2004-05 is concerned, the grounds are only against the direction of the CIT(A) to exclude the expenditure incurred in foreign currency from the export turnover as well as the total turnover for the purpose of computation of deduction u/s 10A of the Act by following the decision of the jurisdictional High Court in the case of Tata Elxsi Ltd.,(cited supra). It is the case of the Revenue that its SLP before the Hon ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
