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2012 (6) TMI 413 - AT - Income TaxDeduction u/s 10A - exclusion of expenditure incurred on account of freight, telecommunication charges, insurance attributable to delivery of articles or computer software, from export turnover while the same is included in total turnover - Held that:- In absence of definition of total turnover, the meaning of the said term for purposes of sections 80HHC and 80HHE and 80HHF are to be applied. Parity is to be maintained with export turnover. Expenses on freight, telecommunication charges or insurance attributable to delivery of articles or things or computer software, required to be excluded from export turnover, are also to be excluded from total turnover for computing exemption u/s 10B/10A. See ITO Vs. Sak Soft Ltd (2009 (3) TMI 243 (Tri)) Similarly, reimbursement of onsite expenses are to be excluded from both export and total turnover for the purpose of computation of benefit under S.10A. Adjustment of profits u/s 10A(7) r.w.s. 80IA(10) - assessee contended that only the profit making companies from the Transfer Pricing Report of the assessee are to be considered in order to determine the ordinary profits - Held that:- Phrase ‘more than ordinary profits’ referred in section 80IA(10) is different from ‘arm’s length price’ as referred u/s 92C. Issue set aside to the file of the AO with a direction to verify the comparable in the light of the decisions of the in the case of Tweezerman (India) P. Ltd. and Digital Equipment India Ltd. Decided in favor of assessee for statistical purposes.
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