2016 (3) TMI 288

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..... rnover, it should also be excluded from the total turnover for the purpose of computation of deduction under S.10A of the Act. Since the view taken by the CIT(A) is in conformity with the view taken in the aforesaid decisions, we do not find any infirmity in the order passed by the learned CIT(A). See CIT V/s. Tata Elxsi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT ),CIT V/s. Gem Plus Jewellery I .....

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..... under S.10A. 3. The facts are narrated in brief. The assessee is engaged in the business of software development services and IT-enabled services. The assessee claimed deduction of ₹ 3,00,30,869 under S.10A of the Act in the return of income filed for the assessment year 2005-06. While verifying the details of expenditure, the Assessing Officer found that a sum of ₹ 2,07,13,351 was .....

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..... Aggrieved, assessee contended before the CIT(A) that the impugned expenditure was incurred in Indian Rupees and the same was not reimbursed by the client to the assessee in foreign currency, in which event, even as per the definition of export turnover in S.10(2)(iv), the claim should not be excluded from the export turnover. An alternative plea was raised that even if it is to be deducted from th .....

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..... bad Bench of the ITAT. He also submitted that recently, the Hon'ble Karnataka High Court in the case of CIT V/s. Tata Elxsi Ltd. (349 ITR 98), referred to plethora of decisions on this point , including the decision of the Hon'ble Bombay High Court in the case of CIT V/s. Gem Plus Jewellery India Ltd. (330 ITR 175) as well as the decision of the ITAT Special Bench Chennai in the case of Sa .....

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..... erred to above, the communication charges having been excluded from the export turnover, it should also be excluded from the total turnover for the purpose of computation of deduction under S.10A of the Act. Since the view taken by the CIT(A) is in conformity with the view taken in the aforesaid decisions, we do not find any infirmity in the order passed by the learned CIT(A). 9. In the result, .....

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