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2010 (9) TMI 108 - DELHI HIGH COURTSTP - Exemption from tax under Section 10A of the Income-Tax Act - assessing officer disallowed the claim - on the ground that they were not directly derived from the export business - reimbursement of expenses incurred in obtaining ISO certification, rent satellite charges, printing, stationery, Corporate charges amounting earned from the sister concern - Held that: - expenses are debited to profit and loss account and while computing profits of eligible undertaking, profits were reduced to the extent of expenses. The amount received by way of reimbursement of expenses cannot be reduced from the profits of business of eligible industrial undertaking. The AO is, therefore, directed not to reduce the profits of business by the amount of Rs. 20 lacs received by way of corporate charges and Rs. 9,00,250/- received by way of reimbursement recovered for use of work stations - assessee do not acquire any new capital asset but merely maintains capital asset already acquired - expenditure assumes the character of revenue - allowable - no substantial question of law arises. Dismissed.
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