2016 (8) TMI 23

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..... excluded from export turnover should also be excluded from the total turnover”. - Decided against revenue.
Smt P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member Revenue by : Shri K.J. Rao Assessee by : Shri M. Chandramouleswara Rao ORDER Per S. Rifaur Rahman, A. M. This appeal is preferred by the Revenue against the order of the learned Commissioner of Income-tax(A) - 2, Hyderabad for AY 2010-11. 2. On perusal of record, we find that there was a delay of 8 days in filing this appeal before us. To this effect, the assessee filed condonation petition stating therein that the records for the AY 2010- 11 could not be traced out immediately, due to which, the said delay occurred in filing the appeal. The ass .....

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..... [2009] 120 TTJ 967 (Hyd.) submitted that if the foreign outgo is to be reduced from the export turnover, the same should also be reduced from the total turnover. 3.2 After considering the submissions of the assessee, the AO held that the department had not accepted the decision of various Hon'ble High Courts in treating the numerator and denominator equally in the formula for the purpose of calculating 10A deduction and the issue is pending before the Hon'ble Supreme Court, the reliance placed by the assessee on the decision in this regard is not considered and the foreign outgo is reduced from the export turnover for the purpose of 10A. Accordingly, the allowable deduction u/s 10A was arrived at ₹ 2,43,97,528/- against ₹ 4,21, .....

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..... ision is available for total turnover?" 3) Any other ground(s) that may be pressed/urged during the Course of appeal." 8. Considered the submissions of the parties and perused the material facts on record as well as the orders of revenue authorities. The issue in dispute is squarely covered by the decision of the coordinate bench in the case of M/s Patni Telecom P. Ltd. (supra) wherein it was held that "the deduction of expenses incurred in foreign exchange both from the amount of total turnover and also from the export turnover for the purpose of computation of the amount of deduction u/s 10A". The Special Bench of the Chennai Tribunal in the case of ITO Vs Saksoft Ltd (313 ITR AT 353) held that "expenses excluded from export tur .....

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