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2013 (6) TMI 593 - AT - Income TaxCalculation of eligible exemption u/s 10A - whether communication and internet charges attributable to the delivery of computer software and expenses incurred in foreign exchange in providing the technical services outside India be included - Held that:- As decided in ITO Vs. Sak Soft Ltd. [2009 (3) TMI 243 - ITAT MADRAS-D] for the purpose of applying the formula under sub-section (4), the freight, telecom charges or insurance attributable to the delivery of articles or things or computer software outside India or the expenses, if any, incurred in foreign exchange in providing the technical services outside India are to the excluded both from the export turnover and from the total turnover, which are the numerator and denominator respectively in the formula. In favour of assessee. Computation of arm's length price - contention of the department that the fund transferred to the subsidiaries on account of share premium without any interest and the assessee could not furnish any such analysis to show that the premium paid was at arm's length - Held that:- The monies parked with its subsidiaries in the form of share premium have to be treated as loan transactions. Vide order sheet noting dated 28/06/2010 and 14/10/2010, the tax payer was asked to justify the funds given to its AEs in the form of share premium on the above lines. There is no compliance from the taxpayer. Being so, the TPO computed notional interest on that and disallowed the same. CIT(A) considered certain datas furnished by the assessee and allowed the claim of the assessee. Thus it is appropriate to remit the issue back to the file of the AO for deciding the issue afresh & assessee directed to place all the necessary evidences before AO what was placed before the CIT(A) for re consideration. Appeal of revenue allowed for statistical purposes.
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