INCOME TAX ACT, 1961

Section 10B

Deduction under section 10B - 100 per cent export-oriented undertaking - Whether expenditure incurred in foreign exchange for providing technical services for development or production of computer software outside India would be includible in export turnover -

Issue under consideration was whether expenditure incurred in foreign exchange for providing technical services for development or production of computer software outside India would be includible in export turnover for the purpose of computing deduction under section 10B. Held: It is settled position that expenditure incurred by assessee in foreign currency in foreign country where it exported computer software would be included in 'export turnover' as it formed the part of export turnover, on which the assessee would be entitled to benefit of deduction under section 10B. Therefore, the expenditure incurred in foreign exchange for providing technical services for development or production of computer software outside India would be includible in 'export turnover' for the purpose of computing deduction under section 10B.

REFERRED : CIT & Anr. v. Mphasis Ltd. (Formerly Known As Mphasis Bfl Ltd.) (2020) 113 taxmann.com 74 (SC): 2020 TaxPub(DT) 0458 (SC), CIT v. Mphasis Ltd (2016) 74 taxmann.com 274 (Karnataka): 2019 TaxPub(DT) 0939 (Karn-HC), CIT & Anr. v. Mphasis Ltd. (Formerly Known As Mphasis Bfl Ltd.) [Special Leave to Appeal (C) No.2373/2015, dt. 28-1-2019]

FAVOUR : In assessee's favour

A.Y. :

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