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2018 (9) TMI 617 - AT - Income TaxDeduction u/s 10A computation - deducting the foreign currency amounting to ₹ 114,299,979/- from the Export turnover for the purpose of computing deduction u/s 10A - Held that:- As decided in assessee's own case [2014 (11) TMI 1159 - ITAT MUMBAI] the facts pertaining to the assessee’s business of software development, the charges and which are claimed to have incurred, are in relation to the business of software development within India. They couldnot be said to be costs deductible from export turnover for the purposes of Section 10A of the Act. In such circumstances, we are of the opinion that any wider controversy or larger question does not require any answer. We can leave that aspect open for the decision in an appropriate case. In relation to the business of the assessee before us, it is not necessary to go into the other contentions raised before us by the revenue Deduction of Insurance expenses from the Export turnover for the purpose of computing deduction u/s 10A - Held that:- This issue has already been adjudicated by Hon’ble Bombay high court in the assessee’s own case for the A.Y. 2006-07 [2014 (4) TMI 1224 - BOMBAY HIGH COURT] the facts pertaining to the assessee's business of software development, the charges and which are claimed to have incurred, are in relation to the business of software development within India. They could not be said to be costs deductible from export turnover for the purposes of Section IDA of the Act, in such circumstances, we are of the opinion that any wider controversy or larger question does not' require any answer. We can leave that aspect open/for the decision in an appropriate case. In the facts and circumstances of the present case and in relation to the business of assessee before us, it is not necessary to go into the other Contentions raised before us by the revenue. Deduction of tele-communication and satellite link charges from Export turnover for the purpose of computing deduction u/s 10A - Held that:- As decided in assessee's own case [2011 (5) TMI 509 - ITAT, MUMBAI ] since we have held that these expenses have been incurred in the business of software development in India, these could not be considered as expenditure attributable to delivery of computer software outside India. We therefore set aside the order of AO on this point and hold that these expenses are not to be excluded from the export turnover. Disallowance with respect to the write off of advances provided to employees in the course of business - as argued by assessee that the advances were given to employee (who left the organization) and the advances were not recovered, therefore, the same is revenue in nature and hence the expenses are liable to be allowed u/s 37(1) - Held that:- The expenses were incurred during the course of business which could not be bifurcated on account of any one and other reasonable if this expenses have been incurred during the course of business, therefore, no doubt, the same is revenue in nature hence the same is allowable, hence, we allowed accordingly.
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