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2011 (4) TMI 936 - AT - Income TaxComputation of relief u/s 10B - business of export of computer software - “Foreign Expenses” (Installation, Services Testing etc.) excluded from export turnover while computing relief u/s.10B – Held that:- When the cost towards installation and testing etc. is borne by the assessee, the export turnover is net of such expenses. If a particular amount is reduced from the amount of export turnover, such amount also needs to be excluded from the figure of total turnover which comprises of the amount of export turnover. Decided in favor of the assessee. Software development expenses as revenue expenses - revenue capitalizing it & providing depreciation on it - Held That:- In order to supply customized software the assessee has necessarily to incur certain input cost which go in making the product customized. Thereby, these are allowable as revenue expenses. Decided in favor of the assessee. Reduction of unrealized export proceeds for the purpose of calculating total turnover – Held that:- The amount of foreign exchange not brought into India within stipulated time was to be excluded from the export turnover but will find its place in the figure of total turnover for computation of relief u/s. 10B. Exclusion of the local turnover from total turnover – Held that:- Local turnover which does not relate to the eligible undertaking u/s 10B, should be excluded from the total turnover. The Assessing Officer is directed to compute relief u/s. 10B in accordance with the above observations. Appeal partly allowed in favor of assessee for statistical purposes.
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