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2020 (5) TMI 53 - AT - Income TaxComputation of deduction u/s 10A - expenditure incurred towards date link charges / telecommunication charges and foreign travel expenses attributable to delivery of computer software for providing technical services outside India to be excluded both from export turnover and total turnover for the purpose of computation of deduction - HELD THAT:- This issue is squarely covered by the judgment of the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Limited [2018 (5) TMI 357 - SUPREME COURT] wherein it was held that the expenditure incurred towards telecommunication charges and foreign travel expenses attributed to the delivery of computer software for providing technical services outside India to be excluded both from export turnover and total turnover for the purpose of computation of deduction u/s 10A of the Act. Being so, we do not find any infirmity in the order of the CIT(A) in following the judgment of CIT v. Tata Elxsi Limited [2011 (8) TMI 782 - KARNATAKA HIGH COURT] and the same is confirmed. Deduction u/s 10A - enhanced income arising out of disallowance u/s 40(a)(ia) against non-deduction of tax on rent payment u/s.194I - HELD THAT:- This issue is squarely covered by the judgment in the case of CIT v. Gem Plus Jewelery India Ltd. [2010 (6) TMI 65 - BOMBAY HIGH COURT] wherein held that the assessee is entitled to exemption u/s 10A of the Act with reference to the addition of disallowance of payments as a plain consequence of the disallowance and the add back made by the AO is an increase in the business profit of the assessee. Being so, we do not find any infirmity in the order of the CIT(A), hence, the same is confirmed. Deduction u/s 10A - assessee has offered the additional income as business profit in the revised return of income - HELD THAT:- In the present case, the assessee has offered the subsequent realized export income by filing a revised return. Therefore, the same should be considered for granting deduction u/s 10A of the Act, and there is no necessity to rectify the same after completion of assessment as held by the Delhi Tribunal in the case of ITO v. M/s.PCL Exports [2011 (3) TMI 1802 - ITAT DELHI]. MAT Computation - Additional revenue to be included in computing book profits u/s 115JB - such amount was not credited to the profit and loss account in the said year - HELD THAT:- Assessee has revised the return of income by including the additional revenue in its total income. However, the assessee did not modify the book profit u/s 115JB of the Act. The Assessing Officer re-computed the book profit by adding the additional income on account of subsequent realization of export profit. In our opinion, the AO book profit, in such cases where the additional revenue was not shown by the assessee in the books of account, as held by the Hon’ble Supreme Court in the case of Apollo Tyres Limited v. CIT [2002 (5) TMI 5 - SUPREME COURT] held AO has the limited power of making increase and reductions as provided for in the Explanation to the said section. To put it differently, the Assessing Officer does not have the jurisdiction to go behind the net profit shown in the profit and loss account except to the extent provided in the Explanation to section 115J - Decided in favour of assessee.
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