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2015 (10) TMI 316 - AT - Income TaxComputation of deduction u/s 10A - exclusion of 50% of expenses incurred on leased lines communication which is treated as expenses incurred for delivery of computer software outside India) from the export turnover - Held that:- Freight, telecommunication charges or insurance attributable to the delivery of articles or things or computer software outside India or expenses incurred in foreign exchange in providing the technical services outside India has to be ironed out from the export turnover. In the case of the assessee, though these expenses are not separately stated and claimed in the invoice, it is embedded in the export invoice raised. If these expenses are not considered while raising the invoice, the assessee would incur loss to that extent because these expenses are directly related and attributable to the export invoice raised. It is only a method of raising the invoice followed by the assessee i.e., either to include such expenses in the invoice on adhoc basis or by specifically stating it separately. By these gimmicks of the assessee, the provisions of the income-tax Act cannot be treated differently in both the situations. Therefore, we agree with the view of the Ld. Assessing Officer that the expenses incurred by the assessee towards delivery of computer software outside India has to be excluded from the export turnover, though it is not separately stated in the invoice. However, we also hereby hold by relying on the decision of Special Bench of the Tribunal in ITO Vs. Sak Soft Ltd., reported in (2009 (3) TMI 243 - ITAT MADRAS-D) that what is excluded from the export turnover has to be also deducted from the total turnover while computing deduction U/s.10A of the Act. Accordingly, we agree with the alternative prayer made by the Ld. A.R. Disallowance of the contribution made to unapproved Gratuity Fund (A.Y 2006-07) - Held that:- Direction of AO to allow the deduction for the payment to LIC on account of Gratuity Fund u/s.37 of the Act is appropriate as the payment made to the Gratuity Fund maintained with LIC where the appellant has no control over the irrevocable trust created exclusively for the benefit of the employees deduction shall be allowed. Therefore, we hereby confirm the order of the Ld. CIT (A) on this issue. - Decided in favour of assessee. Disallowance of 1/3rd of expenditure incurred towards mediclaim for dependent family members of employees - Held that:- On examining the issue, we find that the entire payment of group mediclaim paid by the assessee was to keep the staff of the assessee in good spirits and secured, and to motivate them to perform their duties in the organization with full vigor which will only supplement to the prudent management of the human resources in the organization to increase productivity and profit. Hence, these expenses are directly attributable to the income earned by the assessee company. Therefore claim of the assessee is justified for granting deduction for these expenses incurred by the assessee. - Decided in favour of the assessee.
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