2010 (3) TMI 740

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....otal loss of Rs. Nil. However the assessment was completed at Rs. Nil under the normal provisions of the Act and book profit u/s.115JB at Rs.62,71,28,736/- vide order dt. 29.12.2006 passed u/s.143(3) of the Act. Subsequently the ld. CIT in exercise of his powers u/s.263 of the Act observed that the assessee has claimed deduction u/s.10A amounting to Rs.23,93,12,934/- in respect of its eight STP Units situated at various places which has been allowed by the AO. The assessee company in its submission dated 10.10.2006 has disclosed the unit-wise P&L A/c. in respect of its STP units according to which the assessee company had incurred expenditure relating to Post & Communication and Insurance Charges. However, these were not deducted from the t....

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....ce expenses are not separately recovered in the invoices, therefore, the question of excluding post & communication expenses and insurance expenses from export turnover does not arise. He further submits that this issue is squarely covered by the decision of the Special Bench of the Tribunal in ITO vs. Sak Soft Ltd. (2009) 313 ITR (AT) 353 (Chennai) (SB) wherein it has been held that :- "Expenses on freight, telecommunication charges, or insurance attributable to the delivery of the articles or things or computer software outside India or expenses incurred in foreign exchange in providing technical services outside India, which are required to be excluded from the export turnover as defined in Explanation 2(iii) below section 10B of the ....

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.... not deducted from the total turnover to arrive at the export turnover as per provisions of sec.10A. Per contra, the claim of the assessee is that the post & communication and insurance expenses were not separately recovered in the invoices and hence the question of excluding these expenses to work out the export turnover does not arise and in support he also placed sample copies of invoices before the ld. CIT. In the absence of any contrary material placed on record by the revenue against the factual matrix of the case shown by the assessee before the ld. CIT and also at this stage and respectfully following the decision of the Special Bench of the Tribunal in ITO vs. Sak Soft Ltd. (supra) wherein it has been held (at placitum 53 appearing....