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2014 (11) TMI 1202 - ITAT BANGALORENature of expenditure - Software Expenses allowability - capital or revenue expenses - admission of additional evidence - HELD THAT:- Following this decision of the co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2007-08 [2013 (9) TMI 189 - ITAT BANGALORE] , we also deem it proper to restore this issue back to the file of the Assessing Officer to examine and reappraise the additional evidence filed by the assessee in respect of expenditure incurred on purchase of software of ₹ 10 lakhs and above and decide the issue in accordance with the decisions of the Hon'ble High Court of Karnataka in the case of Toyota Kirloskar Motors P. Ltd. [2013 (2) TMI 108 - KARNATAKA HIGH COURT] and Amway India Enterprises [2011 (11) TMI 4 - DELHI HIGH COURT] Penalty u/s.271(1)( c) - HELD THAT:- This ground of appeal is premature as no order levying penalty u/s.271(1)(c) of the Act has been passed by the Assessing Officer. In this view of the matter, as no cause of action / grievance arises to the assessee by mere issue of the said notice, this ground is not maintainable and is accordingly dismissed. Deduction claimed u/s.80 JJA - AO disallowed the assessee's claim for deduction under section 80 JJA of the Act as the assessee could not substantiate the claim, particularly with respect to the definition of “workmen” as it appeared in the Industrial Disputes Act, 1947 - HELD THAT:- Following the above referred decision of the co-ordinate bench of this Tribunal in the assessee’s own case for A.Y. 2007-08 (supra), we are of the considered view that it would be just and fair to restore this issue, of deduction u/s. 80 JJA of the Act, back to the file of the A.O. with the direction to re-examine and re-adjudicate this issue by passing a reasoned and speaking order; only after affording the assessee adequate opportunity of being heard and to file required details. The assessee is also hereby directed to co-operate in the matter by producing / filing the details / explanations called for by the A.O. It is ordered accordingly. Deduction u/s.10A - excluding the expenditure on telecommunication charges and provision of technical services abroad in foreign currency both from export turnover as well as total turnover - HELD THAT:- Issue is covered in favour of the assessee by the decision of the Hon'ble High Court of Karnataka in the case of Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT] as held that for the purposes of computing deduction under section 10A of the Act, when the Export Turnover is to be arrived at by excluding expenses incurred on telecommunication charges, etc. incurred in foreign currency, the same expenses should be excluded from total turnover also. Decision cited supra is applicable to the case on hand and accordingly direct the Assessing Officer to recompute the deduction under section 10A of the Act for Assessment Year 2008-09 by accordingly excluding the expenditure on telecommunication charges and provision of technical services abroad in foreign currency both from export turnover as well as total turnover.
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