INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Undertaking in a free Trade zone - Exclusion of expenses incurred in foreign exchange from export turnover -

The AO restricted the claim of deduction under Section 10A by excluding the expenditure incurred in foreign currency and telecommunication charges from the export turnover. Assessee contended that the this entire expenditure represents salary and allowances paid to the employees who have been deputed abroad by the assessee as well as salary paid to the employees of the appellant in their STPI Unit in India and other administrative expenses incurred abroad and India. Hence, the same cannot be excluded from export turnover. Held:The issue involved in the present appeal is covered by the decision of the Madras High Court in M/s.Polaris Consulting & Services Ltd. [T.C.A.Nos.961 & 962 of 2008. Leaving the substantial questions of law open, the matter was remitted back to the AO for fresh consideration. After taking into consideration judgment made by the Division Bench of the Court date 23-10-2018 in T.C.A.Nos.961 & 962 of 2008.

Relied:M/s.Polaris Consulting & Services Ltd. [T.C.A.Nos.961 & 962 of 2008 : 2018 TaxPub(DT) 7524 (Mad-HC)]

REFERRED :

FAVOUR : In favour of Assessee

A.Y. : 2003-04

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