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TMI Blog2015 (10) TMI 1609X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income for the assessment year 2010-11 on 29/09/2010 admitting total income of Rs. 5,53,753/- after claiming exemption u/s 10A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] amounting to Rs. 60,14,839/-. During the assessment proceedings u/s 143(3) of the Act, the Assessing Officer (AO) observed that the assessee has incurred certain expenditure on account of communication expenses and having regard to Explanation 2, clause (iv) to section 10A of the Act which defines 'export turnover', he held that the assessee-company ought to have reduced such charges from export turnover to arrive at the claim of deduction u/s 10A of the Act, as such charges incurred are, directly attributable to the delivery o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same and both the assessee as well as the revenue are in appeal before us. As regards deduction of communication expenses from the export turnover for the purpose of computation of deduction u/s 10A of the Act is concerned, we find that the CIT(A) has followed the decision of the jurisdictional High Court in the case of CIT vs. Tata Elxsi (349 ITR 98) to direct the AO that if any expenditure is reduced from the export turnover the same has to be reduced from the total turnover as well while computing deduction u/s 10A. Against such relief given by the CIT(A), the revenue is in appeal before us. We find that this issue is covered in favour of the assessee by the decision of the jurisdictional High Court which has been followed by the CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Karnataka, in the above referred case of Tyco Electronics Corporation India P.Ltd.(cited supra) has held as under: "9a. The statute does not prescribe any time-limit within which the application is to be made for such an extension of time and the period within which the competent authority has to pass an order. The object behind this provision appears to be that once the sale proceeds are received in India though late and the authority vested with the power to extend the time, exercises the discretion, the assessee should be entitled to the benefit. In that view of the mater, the Tribunal was justified in setting aside the order of the Appellate Commissioner as well as the Assessing Officer and in extending the said benefit. It is in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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