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2018 (1) TMI 1545 - AT - Income TaxDeduction u/s 10A - reduction of the expenses incurred in foreign currency from Total turnover for the purpose of computing the deduction to be allowed u/s 10A because such expenses were reduced by the AO from Export Turnover - HELD THAT:- As per the judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] it was held that total turnover is sum total of Domestic Turnover and export Turnover and therefore, if any amount is reduced from Export Turnover than Total turnover also goes down by the same amount automatically. Respectfully following this judgment, this issue is decided in favour of the assessee Exclusion of various comparables - HELD THAT:- Assessee company undertakes Software Development services under a Research & Development Agreement with its parent company thus companies thus companies functionally dissimilar with that of assessee need to be deselected from final list. Deduction u/s 80G in respect of contribution made towards Calamity Relief Fund of Karnataka - HELD THAT:- The bench pointed out that there is no discussion on this aspect in the draft assessment order, order of DRP and in Final assessment order and therefore, it is not clear as to whether any such deduction was claimed or not. The bench observed that if such deduction is claimed in the return of income and it is not allowed without any discussion/objection, this claim can be raised u/s 154 because in that situation, it is an apparent mistake. Assessee had nothing to say. We dismiss this ground with the observation that the assessee can raise before the AO this issue u/s 154 as per law. Interest u/s 234D - assessee submitted that in the present case, refund was not granted but adjusted against old demand and therefore, section 234D is not applicable - HELD THAT:- As per section 234D, where any refund is granted to the assessee under section 143 (1) and no refund is due on regular assessment or refund so granted u/s 143 91) exceeds the refund as per regular assessment, the assessee is liable for interest u/s 234D. In our considered opinion, for applicability of section 234D, issue of refund voucher is not a prerequirement and adjustment of refund against old demand is also granting of refund and section 234D is applicable if such refund is more than the refund allowable on regular assessment. In this view of the matter, Ground is rejected. Appeal filed by the assessee is partly allowed.
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