2014 (4) TMI 31

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....allowances like provision for gratuity provision for leave encashment, bonus payable, employees contribution to the provident fund while computing eligible profits u/s 10A and sec.10AA. 3. The CIT (A) ought to have appreciated the fast that the above disallowances are covered by the decision of the Apex Court in the case of Liberty India vs. CIT in Civil Appeal No.5271/07 dated 31-8-2009 which was also reaffirmed in the case of CIT vs. Sterling Foods (SC) (237 ITR 579) where it was held that the income has to be derived from eligible business for claiming deduction under chapter IVA. 4. The CIT (A) ought not have directed the Assessing Officer to reduce communication charges both from the Export turner as well as the total turnover, a....

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....d by the following decisions: i) Virtusa India (P) Ltd. Vs. DCIT (41 Taxmann.com 244) (Hyd.) ii) Patni Telecom Solutions (P) Ltd. (23 ITR 534) (Hyd) iii) Bartronics India Ltd. Vs. ACIT (52 SOT 188 (Hyd.) iv) DCIT vs. Planet Online Pvt. Ltd. (ITA 1016/H/07) (Hyd.) v) CIT vs. Gemplus Jewellery Mfg. Co. Ltd. Vs. ITO (330 ITR 175) (Bomb.) vi) Sanghvi Jewellery Mfg. Co.Ltd. vs. ITO (19 Taxman.com 55 (Mum.) vii) Galileo India Private Limited vs. CIT (2011-TIOL-79-Income-tax Appellate Tribunal-Del) 5.1 In the case of Gemplus Jewellery Mfg. Co. Ltd., Vs. ITO, 330 ITR 175, the Hon'ble Bombay High Court, held as follows: "That it was an admitted position that the assessee had deposited both the employer's and the employees' co....

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....to exclude the communication charges from the export turnover as well as the total turnover also for the purpose of computation of deduction u/s 10A and 10AA of the Act. Aggrieved, the revenue is in appeal before us. 4. We have heard the arguments of both the parties and perused the record. We find that the issue in dispute is covered by the following decisions: 1. DCIT vs. Mentor Graphics (I)P. Ltd. (ITA696/H/09 (Hyd.) 2. ITO vs. DE Block India Software (P) Ltd. (ITA Nos. 983 & 984/2006 (Hyd.) 3. ADP (P) Ltd. Vs. DCIT (ITA 106 & 155/H/09 (Hyd.) 4. ITO vs. Sak Soft Ltd. (33 SOT 55 (Chennai SB) 5. Exband (India) (P) Ltd. Vs. ITO (ITA 30 of 2007) (Hyd.) 6. Foursoft Pvt. Ltd. Vs. ACIT (2009 TIOL-18ITAT-Hyd.) 7. DCIT vs.....