2016 (6) TMI 896

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..... our consideration :- "(i) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in holding that telecommunication and insurance expenditure is not to be reduced from the export turnover, ignoring the definition provided in Explanation 2(iv) to Section 10 of the Act that excludes telecommunication and insurance charges form the meaning of Export Turnover ? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that Rule 8D is not retrospective and restricting the disallowance to 2% of the dividend received ?" 3. All the three appeals raise identical issues from identical facts save the amount involved. Therefore for the sake of convenie .....

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..... by the respondent assessee under Section 10A of the Act stood reduced by the aforesaid expenditure as Insurance and telecommunication. 5. Being aggrieved, the respondent-assessee carried the issue in appeal to the Commissioner of Income Tax (Appeals) [CIT (A)]. On examination of all facts by dated 19th March, 2010 the CIT (A) allowed the respondent-assessee's appeal on the above issue. It held that holding that telecommunication and insurance expenses incurred were not attributable to delivery of computer software outside India and were also not incurred in foreign currency. Therefore the above expenditure were not required to be reduced from the export turnover for purpose of claiming the benefit of Section 10A of the Act. 6. Being a .....

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..... finding with regard to respondent's contention that this expenditure had been incurred only in India and not with regard to export of software outside India. The CIT (A) as well as the Tribunal have rendered finding of fact that this telecommunication and insurance expenses have been incurred in local currency in India and not with regard to providing software services outside India. This concurrent finding of fact has not been shown to be perverse in any manner. On the above finding of fact, it is evident that exclusion part of Explanation 2(iv) of Section 10A of the Act will not apply to the present facts. In the above view, the question as framed does not give rise to any substantial question of law. 8. Accordingly, question no.(i) .....

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