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2018 (3) TMI 1170 - AT - Income TaxDeduction u/s 10A - provision written back and miscellaneous income eligibility - Held that:- Legal position of the assessee in the case on hand on the issue before us would be supported by the ratio of the decisions of the Full Bench of the Hon'ble Karnataka High Court in the case of CIT Vs. Hewlett Packard Global Soft Ltd. (2017 (11) TMI 205 - KARNATAKA HIGH COURT); wherein it has been held that in the case of a 100% EOU, all the profits and gains arising thereof, including incidental income, would be entitled to exemption / deduction under Section 10A of the Act. Thus we direct the Assessing Officer to allow the assessee deduction under Section 10A of the Act in respect of the assessee's 100% EOU business income, including therein, the provision written back and miscellaneous income which also forms part of the assessee 100% EOU business. TDS u/s 194C/194J applicability for making TDS on payments for lease line expenses for purchase of bandwidth - Disallowance of payments towards Lease line charges u/s.40(a)(ia) - Held that:- Respectfully following the decision of the co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2009-10 we uphold the finding of the learned CIT (Appeals) that lease line charges paid for bandwidth are not liable for TDS under the provisions of Sec.194C / 194J of the Act and therefore no disallowance under Section 40(a)(ia) of the Act was called for. Deduction u/s.10A - reduction of expenditure incurred in foreign currency towards telecom charges as are attributable to the delivery of software outside India - Held that:- The jurisdictional High Court of Karnataka in the case of Tata Elxsi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT ) has held that when certain expenses are excluded from the export turnover for the purposes of claiming deduction admissible under the Act, like under Section 10A of the Act, such expenses are also to be excluded from total turnover, as export turnover forms part of total turnover.
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