The Tax Publishers2020 TaxPub(DT) 1947 (Bang-Trib) : (2020) 184 ITD 0305 : (2020) 208 TTJ 1072 : (2020) 080 ITR (Trib) 0528

INCOME TAX ACT, 1961

Section 10A

Expenditure incurred towards data link charges / telecommunication charges and foreign travel expenses attributable to delivery of computer software for providing technical services outside India were to be excluded both from export turnover and total turnover for the purpose of computation of deduction under section 10A.

Deduction under section 10A - Computation of total turnover - Treatment of items excluded from export turnover -

Assessee claimed deduction under section 10A. AO re-computed amount deductible after reducing expenditure incurred towards data link charges / telecommunication charges and foreign travel expenses attributable to delivery of computer software for providing technical services outside India ,from export turnover ,however, without reducing the same from total turnover. Held: Expenditure incurred towards data link charges / telecommunication charges and foreign travel expenses attributable to delivery of computer software for providing technical services outside India were to be excluded both from export turnover and total turnover for the purpose of computation of deduction under section 10A.

Followed: CIT v. HCL Technologies Limited [(2018) 404 ITR 719 (SC)] CIT v. Tata Elxsi Limited [(2012) 349 ITR 98 (Kar.)]

REFERRED :

FAVOUR : in assessee's favour

A.Y. :


INCOME TAX ACT, 1961

Section 10A

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT