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2013 (5) TMI 731 - AT - Income TaxComputation of deduction u/s 10A by excluding communication expenses from the total turnover as well - Held that:- View taken by the CIT(A) that when the 'total turnover' includes “export turnover”, the very same meaning given to the “export turnover” by the legislature is to be adopted while understanding the meaning of the “total turnover”. Further, it is also noted that the “total turnover” is sum total of “domestic turnover” in the appellant’s case, the “export turnover” will be equal to “total turnover”. Hence, if an item of expenditure is excluded from “export turnover" the same has to be excluded from “total turnover” as well relying upon Patni Telecom (P) Ltd.& Cymbal Information Services (P) Ltd. [2008 (1) TMI 452 - ITAT HYDERABAD-A] & CIT vs Genpact India (2011 (11) TMI 119 - DELHI HIGH COURT). The judgement relied upon by the AO in the context of “expression attributable to” and “derive from” addresses, the settled legal position however in the facts and circumstances of the present case, the nature of expenses in the context of deduction u/s 10A in the peculiar facts and circumstances of the case has been considered. No contrary view of the Jurisdictional High Court or of the Hon’ble Apex Court has been brought to notice in order to canvass that the impugned order deserves to be upset. Against revenue. Computer peripherals and accessories - whether eligible for depreciation @ 60% - Held that:- The issue whether the computer peripherals i.e. printers, inverters, modems, routers for network connectivity, EPABX, tape drive etc. are integral parts of the computer is no longer in question as the issue has consistently been decided in favour of the assessee by various orders of the Tribunal following the judgments of the jurisdictional High Court of Delhi in CIT vs. BSES Yamuna Powers Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] & CIT vs. Orient Ceramics & Inds. Ltd. [ 2011 (1) TMI 26 - DELHI HIGH COURT] where depreciation @ 60% has been allowed on computer peripherals. In favour of assessee. Training expenses - revenue v/s capital - Held that:- Expenses have been incurred for training programmes on regular basis provided to the employees of the assessee in order to update them on a continuous basis of the changes in the industry so as to better adapt them to the changing environment. Thus there can be no two opinions that training is an imperative exercise which when imparted to its employees necessarily impacts the better functioning of the employer. In the present case where the business needs of the assessee demand the training and upgradation of the skills of the staff of the employer and the assessee has incurred such an expenditure the same as per the settled legal position as considered by coordinate orders of various Benches of the Tribunal has to be allowed as a revenue expenditure. See Schneider Electric India (P) Ltd (2008 (8) TMI 778 - ITAT DELHI) & ACIT vs Hero Management Services Ltd. [2013 (5) TMI 730 - ITAT DELHI]. In favour of assessee.
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