TMI Blog2008 (10) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... n arising out of the order passed u/s 263 by the CIT, Bangalore dated 29-10-2007. 2. The assessee company filed its return of income on 28-11-2003 declaring a total income of ₹ 3,11,78,364/- with the concerned AO. The said return of income was processed u/s 143(1) on 16-03-2004 accepting the income returned. Subsequently, the case was selected for scrutiny by issue of notice u/s 143(2) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re or its transmission out of India apart from providing technical services outside India in connection with the development or production of computer software. The assessee company ought to have reduced communication expenses from the export turnover for the purposes of computing deduction u/s 10A. Failure to do so, has resulted in excess claim of deduction u/s 10A and this has been allowed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by which it could be held that such expenses are not to be excluded for the purpose of determining the export turnover for the purposes of section 10A. The CIT also observed that the AO has also not given any specific finding to the effect that the communication costs are not attributable to the delivery of the articles or things or computer software outside India. To that extent, the order u/s 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record, we are of the view that we have been consistently taking a view on the above issue that the AO should reduce the expenditure from the export turnover and correspondingly the same should be reduced from the total turnover. Apart from this factual finding, we are of the view that for invoking the provisions u/s 263, the following two conditions have to be satisfied: 1. Order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the total turnover can be viewed as nothing but the sum of export turnover and domestic turnover. As export turnover is already defined, the same value of export turnover should be adopted in determining the value of total turnover. The term export turnover and total turnover be interpreted in the same manner. Hence, the amounts reduced while calculating export turnover would also need to be red ..... X X X X Extracts X X X X X X X X Extracts X X X X
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