INCOME TAX ACT, 1961

Section 10B

Business deduction under section 10B - 100 per cent export-oriented undertakings - Whether expenditure in foreign exchange excluded from 'export turnover' would be excluded from 'total turnover' also -

Assessee-company was engaged in business of software development and consultancy services. It claimed deduction under section 10B. However, AO recomputed the deduction claimed under section 10B by excluding expenditure in foreign exchange from 'export turnover'. Tribunal was of the view that the expenditure incurred in foreign currency reduced from export turnover would be reduced from total turnover also for computing deduction under section 10B. Aggrieved, Revenue was in appeal. Held: It is settled position that for arriving at profit from export for the purpose of computation of deduction under section 10A, expenditure in foreign exchange excluded from 'export turnover' has to be excluded from 'total turnover' also. Therefore, the Tribunal was justified in holding that the expenditure incurred in foreign currency reduced from export turnover would also be reduced from total turnover for computing deduction under section 10B.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2007-08

INCOME TAX ACT, 1961

Section 10B

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page