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Commissioner of Income Tax Versus M/s. 3D PLM Software Solutions Ltd.

2016 (6) TMI 896 - BOMBAY HIGH COURT

Deduction u/s 10A - telecommunication and insurance expenditure is not to be reduced from the export turnover as per ITAT - Held that:- As provision mandates reduction of telecommunication and insurance charges if it is incurred in foreign exchange for providing of software outside India. We find that the Assessing Officer has in the order not given any finding with regard to respondent's contention that this expenditure had been incurred only in India and not with regard to export of software o .....

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ion as framed does not give rise to any substantial question of law. - Decided against revenue - Disallowance u/s 14A - Tribunal held that Rule 8D is not retrospective and restricting the disallowance to 2% of the dividend received - Held that:- This issue is concluded against the revenue by virtue of decision of this Court in Assistant Commissioner of Income Tax Vs. Godrej and Boyce Mfg. Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Decided against revenue - Income Tax Appeal No. 46 of 2 .....

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owing identical questions of law for 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 a .....

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lakhs. In its return of income an amount of ₹ 14.34 lakhs was claimed as exempt on account of income from software development under Section 10A of the Act. The Assessing Officer noticed that in its Profit and Loss Account the respondent-assessee had debited as Insurance expenses an amount of ₹ 14.37 lakhs and as Telecommunication expenses an amount of ₹ 41.96 lakhs. The Assessing Officer called upon the respondent-assessee to explain why the aforesaid amount should not be dedu .....

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g benefit under Section 10A of the Act. The Assessing Officer without in any manner discussing the contention of the respondent, reduced the telecommunication and insurance expenditure from the total export turnover claimed except as exempt under Section 10A of the Act. Thus, the claim made 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 t .....

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it of Section 10A of the Act. 6. Being aggrieved, the revenue carried the issue in appeal to the Tribunal. The Tribunal by the impugned order on consideration of facts held that the expenses on account of telecommunications and insurance had been incurred in local currency in connection with different locations in India and not with regard to software exported outside India. Consequently, there was no occasion to reduce aforesaid expenses on account of telecommunication and insurance while compu .....

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