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2010 (11) TMI 593 - AT - Income TaxDeduction u/s 10A - The assessee-company is carrying on the business of development and export of software, manpower training, and consultancy services - There is dispute with regard to the quantum of deduction - the assessee is accepting that the interest received from bank deposits and other income has to be treated as income from other sources and, accordingly, they shall not be included in the business profits - The learned Departmental Representative did not object to the submissions of the assessee – It was held that the interest received from bank deposits and other income should be assessed under the head “Income from other sources” and accordingly they shall not form part “Profit from business” for the purpose of computation of deduction under section 10A of the Act The next question is whether the deduction under section 10A is assessee specific or undertaking specific - after the amendment made by the Finance Act, 2001, the total turnover shall comprise of the total turnover of the business carried on by the “Undertaking” only - The amended section is applicable for the years under consideration The claim of the assessee is that if the communication expenses incurred by it are to be reduced from the export turnover; it should also be reduced from the total turnover also - learned CIT(A), in the assessment year 2005-06, has accepted this claim of the assessee on the basis of the decisions of Bangalore Bench of ITAT and also by placing reliance on the decision of Hyderabad Bench of ITAT in the case of ITO v. D.E. Block India Software Ltd. [IT Appeal Nos. 893 and 894 (Hyd.) of 2006], wherein a similar view was expressed In the result, all the three appeals of the assessee and the appeal of the revenue for the assessment year 2005-06 are treated as partly allowed for statistical purposes- The appeal of the revenue for the assessment year 2004-05 is allowed
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