TaxTMI 
TaxTMI 
2009 (9) TMI 991
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....gy India Private Limited as Successor in Interest to "Software & Silicon Systems India Private Limited". Since identical issues are raised in these appeals, they are heard together and disposed of by this common order for the sake of convenience and brevity. 3. The grounds raised in these appeals are identical except in variance in figures and hence, grounds in ITA No.427/09 is reproduced below:- 1) That the order passed by the Commissioner of Income Tax, Large Tax Payers Unit, Bangalore (hereinafter referred to as 'the CIT) u/s 263 of the Income-tax Act, 1961 ('the Act') is contrary to the provisions of law and liable to be quashed. 2.1) That on the facts and in the circumstances of the case, the learned CIT erre....
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....e completed u/s 143(3) of the Act on 28th December, 2006, determining the taxable income at ₹ 17,28,72,010/- and ₹ 8,92,77,120/- respectively. The CIT was of the view that assessments completed u/s 143(3) were erroneous and prejudicial to the interest of revenue, since expenditure incurred in foreign currency, on account of professional and consultancy charges and traveling and conveyance expenses, were not reduced from the export turnover while calculating the deduction u/s 10A of the Act. 5. The reasoning of the CIT was, as per the provisions of section 10A, read with Explanation 2(iv), to arrive at the export turnover, any expenditure incurred in foreign currency in providing technical services outside India has to be reduce....
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....sed on the above discussion on the facts of the case as also various decisions of the court as applicable in the case of the assessee, I have to conclude that the said assessment order of AY 2004- 05 is erroneous and prejudicial to the interest of revenue in so far as not reducing expenditure in Foreign Exchange in respect of professional and consultancy charges and traveling and conveyance while computing correct 10A deduction in accordance with law. Therefore, the Assessing Officer is directed to re-compute 10A deductions in accordance with law in view of the above discussions". 8. The assessee, being aggrieved by the CIT's revisionary order u/s 263 of the Act, is in appeal before us. The learned authorized representative reiter....
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.... or the expenses, if any, incurred in foreign exchange in providing the technical services outside India are to be excluded both from the export turnover and from the total turnover, which are the numerator and the denominator respectively in the formula. The appeals filed by the department are thus dismissed". Even though the order of Special Bench is in the context of section 10B of the Act, the ratio laid down in the above decision applies to section 10A of the Act as well as the provisions of section 10A and 10B are identical on all material aspects. More particularly, both the sections define only Export Turnover but not Total Turnover and sub-section (4) of both the sections prescribe an identical formula for computing the expor....