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TMI Blog2020 (6) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing substantial questions of law: a) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in directing the Assessing Officer to exclude telecommunication expenses of Rs. 39,02,121/-, insurance of Rs. 51,90,128/- and Rs. 24,57,536/- incurred as per diem expenses on employees in foreign currency from total turnover as well for the purpose of computation of deduction under Section 10A of the I.T Act, 1961? b) Whether in the facts and circumstances of the case, the Tribunal is justified in law in allowing assessee's cross objection to exclusion made by the Assessing Authority of medical insurance expenses amounting to Rs. 51,90,128/- incurred on employees sent abroad for onsite computer development ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. The assessee was also held liable to pay interest under Section 234B and Section 234C of the Act. Being aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The appellateauthority by an order dated 05.03.2010 inter alia held that Income Tax Appellate Tribunal in catena of decisions has held that if any part of expenses is to be excluded from the export turnover, the same is required to be excluded from total turnover also. Accordingly, a direction was issued to the assessing officer to exclude the expenses of Rs. 90,92,249/- being expenses incurred towards telecommunication and insurance attributable to the delivery of computer software outside India, expenses incurred in foreign exchange in providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer and the matter was remitted on the aforesaid issue to the assessing officer. It was further held that issue with regard to expenditure incurred onthe employees for development of computer software onsite is covered by the decision of the tribunal in the case of 'INFOSYS TECHNOLOGIES LTD. and it was held that onsite development of computer software cannot be held to be rendering technical services outside India and it cannot be reduced from export turnover. Accordingly, the appeal preferred by the revenue as well as the cross objection preferred by the assessee were partly allowed. Being aggrieved, the revenue is in appeal before us. 4. Learned counsel for the revenue submitted that the tribunal erred in law in direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is a dispute with regard to claim of the assessee with regard to expenditure incurred on insurance to the tune of Rs. 51,90,128/-, which requires adjudication. Accordingly, the first substantial question of law framed by a bench of this court is answered against the revenue insofar as it pertains to exclusion of expenses under the head of telecommunication and per diem expenses. 6. So far as second substantial question of law is concerned, the dispute in the instant case is whether the assessee has incurred an amount of Rs. 51,90,128/-on account of medical insurance of the employees of the assessee on visit to their clients premises or the same is not relatable to medical insurance. The aforesaid issue requires adjudication. We find fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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