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2014 (4) TMI 31 - AT - Income TaxClaim of deduction u/s 10A and 10AA of the Act – Held that:- The decision in Gemplus Jewellery Mfg. Co. Ltd., Vs. ITO [2010 (6) TMI 65 - BOMBAY HIGH COURT] followed - the assessee had deposited both the employer’s and the employees’ contribution towards provident fund and ESIC, though beyond the due date including the grace period - The disallowance which was effected by the AO had not been challenged by the assessee - The plain consequence of the disallowance and the add back that had been made by the AO was an increase in the business profits of the assessee - The contention of the Revenue that in computing the deduction under section 10A the addition made on account of the disallowance of the provident fund/ESIC payments ought to be ignored could not be accepted - No statutory provision to that effect having been made, the plain consequence of the disallowance made by the AO must follow - The Tribunal was justified in directing the AO to grant the exemption u/s 10A of the Act on the assessed income, which was enhanced due to disallowance of the employer’s as well as employees’ contribution towards PF/ESIC –thus, the order of the CIT(A) upheld - Decided against Revenue. Communication charges excluded from the export turnover – Held that:- The decision in ITO Vs Saksoft Ltd [2009 (3) TMI 243 - ITAT MADRAS-D] followed - expenses excluded from export turnover should also be excluded from the total turnover – Decided against Revenue.
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