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TMI Blog2017 (3) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 even if it would have been shown in the accounts ignoring the fact that deduction u/s. 10A would not be available if the foreign exchange is not brought into India in convertible foreign exchange within the specified date. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in fact and in law in not appreciating the fact that the assessee has not justified or explained his claim that the employees had gone to US for training. 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in fact and in law in ignoring the fact that four employees who had undergone training in US did not continue in service of the assessee company by the end of the financial year. 4. That the appellant craves for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order and filed the present appeal before the Tribunal. 5. At the time of hearing Ld. DR relied upon the order of the AO and reiterated the contentions raised by the Revenue in the grounds and requested that Appeal of the Revenue may be allowed. 6. On the contrary, Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which needs to be upheld and accordingly, the appeal of the Revenue may be dismissed. 7. I have heard both the parties and perused the records, especially the impugned order passed by the Ld. CIT(A). I find that Ld. CIT(A) has elaborately adjudicated the issue raised in ground no. 1 to 3 in dispute vide para no. 4.2 to 4.3 from pages 5 to 8 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted a copy of its registration, which was also given at the time of assessment proceedings. Furthermore the appellant company pointed out that the AO erred in holding that the income derived from supply of manpower will not qualify for exemption u/s 1OA. In order to substantiate the fact that the said services qualify for exemption u/s 1OA of the Income tax Act, the appellant enclosed Notification No. 890E dated 26.09.2000 issued by the CBDT, as per which Human Resources Services under Information Technology Enabled Products are eligible for the said exemption. Hence these facts make it clear that the appellant was entitled to exemption under section 1OA of the Act. Once it is established that the appellant company was entitled to exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of passport and visa of the employees etc. Along with this, the appellant also gave necessary documents to substantiate the fact that it is eligible for exemption u/s 1OA of the Income Tax Act. All these documents together with the appellant's submissions go to establish the point that the 11 employees of the appellant company had gone for training to its holding company in the US. III. The appellant has explained the rationale for undertaking such training for its employees. It has also placed reliance on the Hon'ble Delhi High Court judgement in the case of CIT vs Samsung India Electronics Ltd. (2013) 38 Taxmann.com 151 (Delhi), as per which expenditure incurred on training was held to be allowable for the purpose of assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, the assessee enclosed Notification No. 890E dated 26.09.2000 issued by the CBDT, as per which Human Resources Services under Information Technology Enabled Products are eligible for the said exemption. Hence these facts make it clear that the assessee was entitled to exemption under section 1OA of the Act. It is also established that the assessee company was entitled to exemption u/s 1OA of the Income Tax Act, there is very little force left in the AO's position that the assessee company had concealed income derived by its employees on their visit to USA. If the employees had earned any Income during their visit to the holding company in USA, the assesse company could have shown the same and claimed exemption u/s 1OA of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has explained the rationale for undertaking such training for its employees. The case law referred by the Ld. CIT(A) i.e. Hon'ble Delhi High Court judgement in the case of CIT vs Samsung India Electronics Ltd. (2013) 38 Taxmann.com 151 (Delhi), mentioned in his impugned order in which the Hon'ble High Court has specifically held that expenditure incurred on training is allowable for the purpose of assessee's business. Therefore, in my considered opinion the addition in dispute was rightly deleted by the Ld. CIT(A) which does not need any interference on my part, hence, I uphold the same and dismiss the grounds raised by the Revenue. 8. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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