TMI Blog2010 (6) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... CHANDRA POOJARI, ACCOUNTANT MEMBER These two cross appeals are directed against the common order passed by the CIT(A) IV, Hyderabad dated 20-10-2008 for the assessment year 2005-06. Since common issues are involved in the two appeals, they are clubbed together, heard together and disposed off vide this common order for the sake of convenience. 2. The assessee s grievance in its appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative strongly relied on the assessment order. He submitted that since the impugned sales proceeds was not brought into India, it cannot claim deduction u/s 10B on that amount. The departmental representative further submitted that it is not disputed that sales proceeds have not been repatriated in foreign convertible exchange into India, as such it is to be excluded both from export turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign exchange. The object therefore, appears to be to encourage more inflow of convertible exchange and not the mere export of goods. Making it available with reference to the realization in convertible exchange is suggestive of the fact that it was with a view to encourage foreign exchange inflow. Under the provisions of S.10B to avail the deduction under this sec. the undertaking has to bring in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gument of the assessee s counsel is bereft of any merit since the branch sales cannot be equated with on site development of software which is not identical. In our humble opinion, assessee is not entitled for benefit of Sec.10B on the Branch sales and it is to be excluded both from export turnover as well as from total turnover. Accordingly, this ground raised by the revenue and as well as by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India are to be excluded both from the export turnover and total turnover which are numerator and in the denominator respectively in the formula. 8. In view of the order of the Tribunal, we are of the opinion that foreign travel expenses to be reduced both from export turnover as well as from total turnover and as such we do not find any infirmity in the order of the CIT(A) on this issue and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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