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2015 (3) TMI 503 - AT - Income TaxDeduction u/s.10A - Revenue assails the order of the CIT(A) in directing the AO to exclude the reimbursement of expenditure incurred in foreign exchange towards foreign travel and insurance expenses both from the export turnover as well as total turnover while computing the deduction under Section 10A - Held that:- Respectfully following the decision of Tata Elxsi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT ) we uphold the order of the learned CIT (Appeals) in directing the Assessing Officer to reduce the expenditure incurred in foreign currency on travelling, insurance and provision of technical services abroad from both export turnover and total turnover for the purpose of computing the deduction under section 10A of the Act in the case on hand as there should be uniformity in the ingredients of both the numerator and the denominator of the formula - Decided against revenue. Subscription for Broadband facility - whether not in the nature of fees for technical services (‘FTS’) and therefore there is no requirement for TDS to be made under Section 194J? - CIT(A) delted disallowance - Held that:- Revenue failed to bring on record any material evidence or place before us any judicial decision that controverts the finding of the learned CIT(A) on this issue. In this view of the matter, we concur with the view of the learned CIT(A) in following the aforesaid judicial pronouncements CIT V Bharti Cellular Ltd. [2008 (10) TMI 321 - DELHI HIGH COURT], Skycell Communication Ltd. V CIT [2001 (2) TMI 57 - MADRAS High Court], Expeditors International (India) (P) Ltd. V CIT [ 2008 (8) TMI 399 - ITAT DELHI-F] and Pacific Internet (India) (P) Ltd. V ITO [2008 (12) TMI 429 - ITAT MUMBAI] that endorse the view that the payment of ₹ 337,080 towards subscription of broadband facility are not in the nature of technical services and therefore TDS need not be made thereon as per the provisions of section 194J of the Act. - Decided against revenue. Repair charges disallowed - CIT(A) allowed claim - Held that:- In an appreciation of the facts on record we concur with the observations of the learned CIT(A) that the view of the Assessing Officer, that the expenditure incurred on repairs and maintenance and shifting of assets being capital in nature, is not borne out by any material evidence to establish that the said expenditure of ₹ 17,94,630 has resulted in any enduring benefit to the assessee. Before us also except for raising the ground, the Revenue had not been bring on record any material evidence to controvert this finding of the learned CIT(A) and restore the view of the Assessing Officer. In this view of the matter, we uphold the finding of the learned CIT(A) that the expenditure of ₹ 17,94,830 incurred on repairs and maintenance and shifting of assets is revenue in nature.- Decided against revenue.
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