TMI Blog2011 (12) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... e second ground in the Revenue appeal is the CIT(A) erred in holding that if the (i) link charges and interest charges of ₹ 88,48,254 and (ii) per diem expenses at ₹ 1,11,18,124 were excluded from the export turnover, the same have to be excluded from the total turnover also, when such an adjustment to the total turnover is not contemplated in the provisions laid down below section 10A. 4. We have heard both the parties and perused the material available on record. We find that this ground is covered by the decision of Special Bench of the Tribunal in the case of ITO vs. Sak Soft Limited, 121 TTJ 865 (Chennai SB) wherein it was held that whatever amount is deducted from the export turnover, the same should also be deducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t section from the total income of the assessee. It is further stated that since the entire profits in their case, were derived only from the undertaking engaged in the business of export of computer software eligible for deduction under section 10A and they have not derived profits from any other business other than the said undertaking, the learned authorized representative contended that the assessing officer was not justified in excluding the said disallowance under section 43B of the Act from deduction under section 10A and simultaneously brought the same to tax as income from other sources. 7. After considering the submissions of both the parties, we are of the opinion that similar issue came up for consideration before the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssible. The assessee s business is in software and not in dealing with contribution of PF of employees. We are, therefore, inclined to uphold the order of the CIT (A). Accordingly, the order of the CIT (A) on this issue is confirmed. 8. In view of the above order of the Tribunal, we are of the opinion that it cannot be considered as business income and the same to be considered as income from other sources and on this, exemption under section 10A is not allowable. Accordingly, we are inclined to reverse the finding of the CIT (A) on this issue. This ground of the Revenue is allowed. The appeal filed by the Revenue is partly allowed. 9. Now, we deal with the Cross Objection filed by the assessee. The facts relating to ground No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Virtusa Corporation, USA. Lastly, stating that such expenses were incurred on behalf of Virtusa Corporation and the same were reimbursed by the latter, the assessee contended that the same should not be added to the total turnover. The DR relied on the orders of the lower authorities. 10. We have considered the rival submissions of the parties and perused the material available on record. We find that a similar issue came up for consideration before this Tribunal in the case of DCIT vs. IBS Software Services Pvt. Ltd. (129 ITD 21) (Cochin) wherein it was held that reimbursement of miscellaneous expenses and travel expenses are to be reduced both from export turnover as well as from total turnover while computing deduction u/s. 10A of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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