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2015 (3) TMI 1220 - AT - Income TaxDeduction under Section 10A computation - exclusion of telecommunication expenses, insurance charges, personnel expenses, professional expenses, branch office expenses and other expenses incurred in foreign exchange from export turnover for the purpose of computing from export turnover for the purpose of computing deduction - Held that:- Respectfully following the decision of the Hon'ble High Court of Karnataka in the assessee's own case for Assessment Years 2001-02 to 2004-05 we hold that expenses incurred in foreign currency should not be reduced from export turnover for the purposes of computation of deduction under Section 10A of the Act. In respect of telecommunication charges in respect of Assessment Years 2006-07 and 2007-08, the Assessing Officer shall verify whether the expenditure incurred on telecommunication charges and insurance charges were recovered and included in the export turnover so that this expenditure are liable to be excluded from export turnover. On the other hand, if the expenditure incurred on telecommunication charges and insurance charges were not recovered and not included in the export turnover, the Assessing Officer shall not reduce the same from the export turnover. Further, from the submissions made before the Assessing Officer it is submitted that insurance charges were paid to protect the assessee against the risk of bankruptcy of the overseas customers and it was not incurred for the purpose of export of computer software. The Assessing Officer is directed to verify this aspect and reduce the insurance charges only if the said expenditure is incurred for the purpose of export of computer software.
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