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2013 (11) TMI 891 - AT - Income TaxAllowability of deduction under section 10B and under section 80HHE of the Act - Deduction under section 10B is allowable to 100% export oriented undertakings engaged in the export of articles, things or computer software and which have been approved for this purpose by the competent authority. Deduction under section 80HHE is available in respect of profit from the export of computer software or from its transmission to a place outside India or from providing technical services outside India in connection with development/production of computer software - Assessee is engaged in contract research activity on behalf of the foreign pharmaceutical companies and is also engaged in medical transcription activity – Held that:- The matter restored to the file of Commissioner(A), to decide the issue afresh in the light of various judgments s.a. CIT vs. Black & Veatch Consulting (P) Ltd [2012 (4) TMI 450 - BOMBAY HIGH COURT ], wherein it has been held that deduction under section 10B has to be allowed before setting off brought forward losses. Also, in the light of judgments in the case of Shirke Constructions Ltd.[2007 (5) TMI 194 - SUPREME Court], wherein it has been held that brought forward loss has to be adjusted before allowing deduction under section 80HHC. Treatment of expense regarding renovation of director’s office which being the rented premises, a capital expenditure of revenue expenditure – Held that:- In view of Explanation -1 to section 32(1) inserted from assessment year 1988-89, the capital expenditure incurred by way of renovation or extension or improvement even in rented premises has to be considered as owned by the assessee on which depreciation is allowable - Full details of expenditure has not been brought on record either in the order of AO or in the order of CIT(A). Further CIT(A) has also mentioned that copy of agreement with landlord had not been produced by the assessee which in our view is necessary in understanding the true nature of expenses - Matter requires fresh examination and hence restored this issue also, back to CIT(A) for passing a fresh order.
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