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2013 (10) TMI 1395 - ITAT HYDERABADBenefit u/s. 10A - Held that:- As decided in assessee’s own case for A.Y. 2007-08 as can be seen from the order of the DRP, though they have accepted the fact that the Chennai unit is not formed by reconstruction of the Hyderabad unit, but, they ultimately held that Chennai Unit and Hyderabad Unit are not two distinct and independent units. However, on perusal of the aforesaid order of the coordinate Bench, we find that the issue in dispute has been set at rest and decided in favour of the assessee. Therefore, following the decision of the coordinate Bench, we allow the ground of the assessee and direct the AO to allow benefit u/s. 10A of the Act to the Chennai Unit. Amount of statutory disallowance has to be considered as business profit eligible for deduction u/s. 10A of the Act. Communication charges, insurance charges and reimbursement of expenses attributable to the delivery of computer software outside India, are to be reduced from the export turnover then the same should as well be reduced from total turnover while computing deduction u/s. 10A of the Act.
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