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2018 (11) TMI 269 - HC - Income TaxNature of expenditure - cost of the acquisition of the computer software - revenue or capital expenditure - Held that:- As appellant fairly submits that substantial question of law No.1, as framed above, cannot be answered in the light of the fact that the assessee has been granted the benefit under Section 10A of the Income Tax Act, 1961 and that the issue has become academic. Recording the said submission, substantial question of law No.1 is left open and not decided. Computation of deduction u/s 10A - expenditure incurred in foreign exchange is liable to be deducted from the export consideration to arrive at the export turnover, the same is not liable to be deducted from the total turnover to arrive at the denominator in the formula - Held that:- This issue is squarely covered by the decision in the case of CIT Vs. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] wherein held what is excluded from ‘export turnover’ must also be excluded from ‘total turnover’, since one of the components of ‘total turnover’ is export turnover. Any other interpretation would run counter to the legislative intent and would be impermissible.
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