TMI Blog2014 (6) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... , its appeal under section 260A against the same is pending before the jurisdictional High Court. In our considered opinion, mere pendency of such an appeal does not form a justifiable reason to adopt a different approach without any distinction on facts. Hence, we hold that the Commissioner of Income-tax (Appeals) has rightly directed the Assessing Officer to deduct travel expenses incurred in foreign currency and communication charges both from export as well as the total turnover in view of the Special Bench's decision (supra). - Decided against Revenue. - I.T.A. Nos. 899 to 902 & 928/Mds/2014 - - - Dated:- 26-6-2014 - SHRI A.MOHAN ALANKAMONY SHRI S.S. GODARA, JJ. For the Appellant : Shri. N. Madhavan, IRS, JCIT For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the outset, the Revenue/appellant clarifies that the sole issue involved in all cases is as to whether expenditure incurred towards travel expenses and communication charges in foreign currency for the purpose of section 10B deduction are liable to be excluded only from export turnover as per the Assessing Officer or from the total turnover as well as held by the Commissioner of Income-tax (Appeals). So, we take up I. T. A. No. 899/ Mds/2014 as the lead case. 4. The assessee-company is engaged in the business of development and export of software. On September 22, 2005, it had filed its return declaring income of ₹ 6,38,43,620 and claimed deduction under section 10B qua the entire amount. The same was summarily processed. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 10B of the Act. But sections 80HHC and 80HHE which provides the deduction in respect of profits from export of computer software etc. defines 'export turnover' on similar lines 10A and 10B and its Explanation. Hence, the authorised representative stated that the travel expenses and communication charges needs to be deducted both from total turnover as well as from the export turnover. Further, he has relied on the following decisions. (i) ITO v. Sak Soft Ltd. [2009] 313 ITR (AT) 353 (Chennai) [SB] ; (ii) ITO v. D. E. Block India Software P. Ltd. (I. T. A. Nos. 983 and 984/Hyd/2006) ; and (iii) Asst. CIT v. SIP Technologies and Exports Ltd. (I. T. A. No.2401/Mds/2005). 6.3.2. As the issue raised in this gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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