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TMI Blog2016 (6) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been incurred in local currency in India and not with regard to providing software services outside India. This concurrent finding of fact has not been shown to be perverse in any manner. On the above finding of fact, it is evident that exclusion part of Explanation 2(iv) of Section 10A of the Act will not apply to the present facts. In the above view, the question as framed does not give rise to any substantial question of law. - Decided against revenue Disallowance u/s 14A - Tribunal held that Rule 8D is not retrospective and restricting the disallowance to 2% of the dividend received - Held that:- This issue is concluded against the revenue by virtue of decision of this Court in Assistant Commissioner of Income Tax Vs. Godrej and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05-06. 4. Regarding question no.(i) : (a) For the assessment year 2005-06 the respondentassessee filed return of income declaring total income of ₹ 18.65 lakhs. In its return of income an amount of ₹ 14.34 lakhs was claimed as exempt on account of income from software development under Section 10A of the Act. The Assessing Officer noticed that in its Profit and Loss Account the respondent-assessee had debited as Insurance expenses an amount of ₹ 14.37 lakhs and as Telecommunication expenses an amount of ₹ 41.96 lakhs. The Assessing Officer called upon the respondent assessee to explain why the aforesaid amount should not be deducted from total export turnover on account of software development so as to limit th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in appeal to the Tribunal. The Tribunal by the impugned order on consideration of facts held that the expenses on account of telecommunications and insurance had been incurred in local currency in connection with different locations in India and not with regard to software exported outside India. Consequently, there was no occasion to reduce aforesaid expenses on account of telecommunication and insurance while computing the export turnover eligible to the benefit of Section 10A of the Act. Accordingly, the appeal of the revenue was dismissed. 7. Before dealing with the question it would be necessary to refer to Explanation 2(iv) to Section 10A of the Act which reads as under : Explanation 2 (iv) export turnover means the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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