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2012 (7) TMI 582 - AT - Income TaxEligibility for deduction u/s 1OA - assessee company has five units registered under STPI - Held that:- To avail the facilities and privileges admissible under the STP scheme the unit has to be custom bonded. The assessee has obtained clarification from STPI as per letter dated 20th April, 2004 from Director, STP. It is mentioned that if the assessee intend to avail any duty concession, then the assessee is required to approach custom for custom bonding. Hence, it cannot be read in the provisions of the Act that for availing deduction s/u lOA, the assessee should first obtain the custom bonding and then should commence production - the assessee has demonstrated that first invoice has been raised after it has obtained the approval of STPI. Thus claim of exemption u/s 10A is admissible. For the purpose of computing deduction u/s 10A of the Income-tax Act, if any income is excluded from the export turnover, then the same has to be excluded from the total turnover also. Addition of an amount as foreign exchange gain for the purpose of computing deduction u/s 10A by assessee - Held that:- CIT Vs. Infosys Technologies Ltd. [2011 (11) TMI 443 - KARNATAKA HIGH COURT] wherein the Hon’ble Karnataka High Court confirmed that the fluctuation in the valuation of currency which has to be converted to foreign exchange currency has direct nexus to the export of software and can never be included as income from other sources - in favour of assessee. Inclusion of income in the nature of ‘interest income’ and ‘miscellaneous income’ in the profits of the undertaking as eligible for deduction u/s 10A - Held that:- The ‘interest income’ and ‘miscellaneous income’ for units 5 and 6 have been excluded from the profits and gains of the undertaking for computation u/s 10A and while making such adjustment in computation, inadvertently foreign exchange gain was also excluded from the profit of the business of the undertaking - thus to consider the actual bifurcation deem it fit and proper to remit the issue back to the file of the AO for reconsideration. Claim of assessee to include the income from recruitment fee as part of export turnover for the purpose of computing the deduction u/s 10A - assessee submitted the recruitment/human resource services rendered by the company squarely falls within the ambit of human resources services mentioned in the notification dated 26.9.2000 - Held that:- As both the parties have agreed for accepting the alternate plea that the assessee must prove with supporting evidence as to which expenses are allowable under the Act and should produce evidence for claiming the expenses relating to the business of ‘body shopping’ by the assessee,no reason to adjudicate on the issue as to whether the recruitment fee would form part of export turnover. Therefore, the issue is left open to the assessee to agitate in appropriate cases - direct the AO to consider only the net income from ‘manpower supply’ as ‘income from other sources’
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