TMI Blog2017 (9) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of revenue is dismissed - ITA No.1618/Bang/2016 And C.O No.48/Bang/2017 - - - Dated:- 2-6-2017 - SHRI VIJAYPAL RAO, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER For The Revenue : Smt. Swapna Das, JCIT For The Assessee : Shri Rony Antony, C.A ORDER PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals) 4, Bangalore dated 21/6/2016 for the Assessment Year 2010-11. The assessee has also preferred cross objection ( CO ) in respect of the impugned order. 2. Briefly stated, the facts of the case are as under:- 2.1 The assessee, a company engaged in the business of providing ITES and consultancy service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in foreign currency from the export turnover. 3. The Ld. CIT (A) ought to have appreciated that there is no provision in Sec. 10A which requires the concered expenses, which are required to be reduced from the export turnover as per clause (iv) of the Explanation to Section 10A to be reduced from the total turnover also. 4. On the facts and circumstances to the case, the Ld. CIT (A) has erred in directing to follow the ratio laid down by the Hon'ble HC in the case of CIT Vs. Tata Elxsi Ltd. while computing the deduction u/s 10a, when the Department has filed a SLP before the Hon'ble SC on this issue which is pending adjudication. 5. For these other grounds that may be urged at the time of hearing it is prayed that the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e perused and carefully considered the material on record: As regards the issue of reduction of the reimbursement of expenditure incurred in foreign currency as are attributable to the delivery of software outside India and in rendering of technical services outside India, the jurisdictional High Court of Karnataka in the case of Tata Elxsi Ltd., (349 ITR 98) has held that when certain expenses are excluded from the export turnover for the purposes of claiming deduction admissible under the Act, like u/s. 10A of the Act, such expenses are also to be excluded from total turnover, as export turnover forms part of total turnover. Section 10AA of the Act being analogous to sec. 10A of the Act, the aforesaid decision of Hon ble Karnataka High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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