TMI Blog2024 (12) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... s affirmed the conclusions of the Commissioner of Income-Tax (Appeals) on a mistaken premise that the appeal has been filed by the assessee. Substantial question of law no.1 is misconceived as that issue does not arise from the order of the Income Tax Appellate Tribunal, and is hence returned unanswered. Telecommunication expenditure should be excluded both from the export turnover and the total turnover for the purpose of computing deduction u/s 10A - HELD THAT:- Issue arising in substantial question no.2 is covered by a judgment of the Supreme Court in the case of Commissioner of Income-Tax, Central III v HCL Technologies Ltd [ 2018 (5) TMI 357 - SUPREME COURT] wherein held that expenses incurred in foreign exchange for providing the tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Business Export turnover as defined in Explanation 2 (IV) of Section 10A of IT Act x --------------------------------------------- Export turnover as defined in Explanation 2(IV) of Section 10A of the IT Act + domestic sale proceeds 19) In the instant case, if the deductions on freight, telecommunication and insurance attributable to the delivery of computer software under Section 10A the IT Act are allowed only in Export Turnover but not from the Total Turnover then, it would give rise to inadvertent, unlawful, meaningless and illogical result which would cause grave injustice to the Respondent which could have never been the intention of the legislature. 20) Even in common parlance, when the object of the formula is to arrive at the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,51,97,700/- (2) restatement of sundry creditors : Gain Rs. 2,68,78,061/- (3) restatement of bank balances (EEFC) : Gain Rs. 2,61,93,298/- (4) restatement of bank balances (EEFC) : Loss Rs. 1,60,20,353/- Loss Rs. 6,71,48,694/- The AO has not assigned any reasons for the above disallowance and proceeded to make the above addition in the assessment order. I find that this issue has been decided in favour of the appellant by the Hon'ble Supreme Court in the case of Oil and Natural Gas Corporation Ltd (supra) following the case of Woodward Governor India Limited (supra) wherein it was held that any loss are arising out of exchange fluctuation as on the balance sheet date was allowable as a deduction u/w 37(1) of the Act, notwithstanding th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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