9911796707
Advanced Search 
TMI Blog2020 (8) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... by a bench of this Court vide order dated 09.04.2013 on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the Honourable ITAT was right in upholding the action of the Learned Respondent in excluding expenditure of Rs. 198,17,58,814/- incurred in foreign currency from export turnover under Section 10B and Section 10AA of the IT Act when the Appellant is engaged in software development? (ii) Whether on the facts and in the circumstances of the case, the Honourable ITAT was right in upholding the action of the Learned Respondent in excluding telecommunication charges of Rs. 3,70,62,460/- from export turnover under Section 10B and Section 10AA of the IT Act when the same represented p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act was issued. The Assessing Officer by an order 31.12.2010 inter alia held that deductions as claimed by the assessee under Section 10B and Section 10AA are required to be recomputed and the return of income after re- computation of the deduction was assessed along with interest and penalty. Being aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by an order dated 03.02.2012 partly allowed the appeal. Being aggrieved, the assessee as well as the revenue filed appeals before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal', for short). The Tribunal vide order dated 11.01.2013 dismissed the appeal preferred by the assessee. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 26.12.2011 passed by the Assessing Officer in the case of assessee itself for the Assessment year 2009-10, and the expenditure incurred by the assessee towards telecommunication expenses, foreign currency expenses was excluded from the export turnover. The aforesaid order was upheld by the Income Tax Appellate Tribunal vide order dated 11.05.2016 passed in I.T.A.Nos.1328, 1347/bang/2011 and 1391/bang/2013. Thereafter, an order was passed on 31.01.2017 by which the order of the Tribunal was given effect to. It is further submitted that substantial questions of law involved in this appeal are no longer res integra and have been answered by a division bench of this court in I.T.A.No.42/2008 vide judgment dated 20.10.2014. The aforesaid order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 10B and Section 10AA of the Act. Explanation 2(iii) to Section 10B "export turnover" means the consideration in respect of export by the undertaking of articles or things or computer software received in, or brought into India by the assessee in convertible foreign exchange in accordance with Section 10B(3), but does not include:- (a) Freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India. or (b) Expenses, if any, incurred in foreign exchange in providing the technical services outside India. 7. From perusal of aforesaid provision, it is evident that expression 'export turnover' does not include any ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d outside India." 9. Thus, the Commissioner of Income Tax (Appeals) has recorded a categorical finding that assessee is engaged in the development of computer software, which is exported outside India. The aforesaid finding has not been set aside by the Tribunal. Therefore, in view of Explanation 2(iii) to Section 10B of the Act, the expression 'export turnover' does not include any expenses incurred in foreign exchange in providing technical services outside India. The assessee has incurred expenditure of Rs. 198,17,58,814/- in foreign currency from export turnover for software development. Similarly, the telecommunication charges attributable to delivery of computer software outside India could not have been excluded from the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
