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2018 (5) TMI 1081 - AT - Income TaxExclusion of proportionate unbilled revenue from the export turnover while computing deduction under section 10A - Held that:- The assessee has duly accounted for the said work done following the revenue recognition as per the accounting standard 9 issued by ICAI. Moreover, the assessee is consistently following the practice of revenue recognition of unbilled revenue in its business which is accepted by the revenue in the past. The case of the assessee is also squarely covered by the decision of co-ordinate bench of the Tribunal in the case of M/s. iNautix Technologies India Pvt. Ltd. vs. ACIT (2012 (12) TMI 615 - ITAT CHENNAI) wherein a similar issue has been decided that the amount of unbilled revenue should be included in the export turnover and also in the total turnover for the purpose of calculating deduction u/s 10A of the Act - Decided in favour of assessee. Excluding the proportionate revenue earned from onsite work subcontracted to its associated enterprise while computing under section 10A of the Act - Held that:- The case of the assessee is squarely covered in the case of CIT vs. M/s. Mphasis Software and Service India Pvt. Ltd. (2015 (10) TMI 2062 - KARNATAKA HIGH COURT) wherein it has been held that profit is attributable to onsite work of development of software through sub-contracting of certain operation to AEs is part of the net profit for the purpose of claiming deduction under section 10A. We set aside the order of Ld. CIT(A) and direct the AO to allow the deduction in respect of sub-contracting amount - Decided in favour of assessee.
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