TMI Blog2014 (8) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-2014 - SHRI A.MOHAN ALANKAMONY SHRI S.S. GODARA, JJ. For the Appellant : Shri A. Mishra CIT (DR) B. Srinivas Kumar DR For the Respondent : Shri S.K. Bajaj CA ORDER S. S. Godara (Judicial Member).- This Revenue's appeal for the assessment year 2006-07 ; emanates from the order dated October 31, 2013 passed by the Commissioner of Income-tax (Appeals)-III, Chennai in I. T. A. No. 1560/2013-14 in proceedings under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The Revenue pleads its grievance in the present appeal as under : 2.1 The learned Commissioner of Income-tax (Appeals) erred in directing the Assessing Officer to reduce telecommunication charges, insurance and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 080, ₹ 24,76,390, ₹ 50,72,372, ₹ 12,06,621, ₹ 3,60,53,390 and ₹ 76,40,386 totalling ₹ 7,63,38,238 forming part of the export turnover. The Assessing Officer was of the view that as per the very statutory provision, these expenses attributable towards providing technical services outside India deserved to be excluded from the export turnover. 4. In the assessee's appeal, the Commissioner of Income-tax (Appeals) has held that whatever expenses incurred in foreign exchange is excluded from the export turnover, the same are also to be excluded from the total turnover as under : 8.3 The next issue in the grounds of appeal is regarding the exclu sion of expenditure incurred in foreign cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy from the total turnover without corre sponding reduction from the total turnover for the claim of benefit available under section 10A of the Act is squarely covered by the order of the Income-tax Appellate Tribunal, Chennai Special Bench's hearing in the case of ITO v. Sak Soft Ltd. [2009] 313 ITR (AT) 353 (Chennai) [SB]. The decision highlighted in the said case is repro duced as under (page 398) : ' . . . we hold that for the purpose of applying the formula under sub-section (4) of section 10B, the freight, telecom charges or insur ance attributable to the delivery of articles or things or computer software outside India or the expenses, if any incurred in foreign exchange in proving the technical services outs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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