TMI Blog2020 (6) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... serves to be excluded. However, in the instant case, there is a dispute with regard to claim of the assessee with regard to expenditure incurred on insurance to the tune which requires adjudication. Accordingly, the first substantial question of law framed by a bench of this court is answered against the revenue insofar as it pertains to exclusion of expenses under the head of telecommunication and per diem expenses. Allowable business expenditure - Whether the assessee has incurred an amount on account of medical insurance of the employees of the assessee on visit to their clients premises or the same is not relatable to medical insurance? - HELD THAT:- We find from the order passed by the tribunal that tribunal has remitted the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, the Tribunal is justified in law in allowing assessee s cross objection to exclusion made by the Assessing Authority of medical insurance expenses amounting to ₹ 51,90,128/- incurred on employees sent abroad for onsite computer development from export turnover even though there are expenses incurred in foreign exchange in connection with providing technical services outside India? 2.Facts leading to filing of this appeal, briefly stated are that the assessee is engaged in the business of development and export of computers. The assessee had filed return of income on 31.10.2002 declaring total income of ₹ 11,28,600/-. The return was processed under Section 143(1) of the Act. Subsequently, thecase was reopene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso. Accordingly, a direction was issued to the assessing officer to exclude the expenses of ₹ 90,92,249/- being expenses incurred towards telecommunication and insurance attributable to the delivery of computer software outside India, expenses incurred in foreign exchange in providing technical services outside India to the tune of ₹ 24,57,536/- from the export turnover and correspondingly from the total turnover. The assessing officer was also directed to ascertain the claim of the appellant with regard to the export turnover. It was held that no appeal can lie against an order charging interest under Section 234B of the Act if there is an incidence and assessing officer was directed to charge the same if chargeable after taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduced from export turnover. Accordingly, the appeal preferred by the revenue as well as the cross objection preferred by the assessee were partly allowed. Being aggrieved, the revenue is in appeal before us. 4. Learned counsel for the revenue submitted that the tribunal erred in law in directing the assessing officer to exclude telecommunication expenses of ₹ 39,02,129/-, a sum of ₹ 51,90,128/- towards insurance expenses and sum of ₹ 24,57,536/- incurredas per diem expenses on employees in foreign currencyfrom the total turnover as well as for the purpose of computation of deduction under Section 10A of the Act. It is further submitted that reliance placed by the tribunal on the decision of INFOSYS TECHNOLOGIES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law is concerned, the dispute in the instant case is whether the assessee has incurred an amount of ₹ 51,90,128/-on account of medical insurance of the employees of the assessee on visit to their clients premises or the same is not relatable to medical insurance. The aforesaid issue requires adjudication. We find from the order passed bythe tribunal that tribunal has remitted the claim of the assessee that insurance expenditure is not relatable to export of computer software but it relates to medical insurance of the employees of the assessee on the visit to their clients premises. While issuing the aforesaid direction, the tribunal has followed the decision rendered by it in INFOSYS TECHNOLOGIES LTD., supra. Against the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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