2014 (8) TMI 943

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....gs under section 143(3) of the Income-tax Act, 1961 (in short the "Act"). 2. The Revenue pleads its grievance in the present appeal as under :              "2.1 The learned Commissioner of Income-tax (Appeals) erred in directing the Assessing Officer to reduce telecommunication charges, insurance and expenses incurred in foreign exchange in providing the technical services outside India both from the export turnover and also from the total turnover for the purpose of calculation of deduc tion under section 10A.               2.2 It is submitted that the decision of the Special Bench of the jurisdictional Inco....

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.... turnover. 4. In the assessee's appeal, the Commissioner of Income-tax (Appeals) has held that whatever expenses incurred in foreign exchange is excluded from the export turnover, the same are also to be excluded from the total turnover as under :              "8.3 The next issue in the grounds of appeal is regarding the exclu sion of expenditure incurred in foreign currency both from the export turnover in the numerator and also from the total turnover in the denominator. The Assessing Officer while completing the assessment under section 143(3) and also while passing the rectification order under section 154 has reduced the quantum of telecommunication charges of Rs. 32....

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....pellate Tribunal, Chennai Special Bench's hearing in the case of ITO v. Sak Soft Ltd. [2009] 313 ITR (AT) 353 (Chennai) [SB]. The decision highlighted in the said case is repro duced as under (page 398) :               ' . . . we hold that for the purpose of applying the formula under sub-section (4) of section 10B, the freight, telecom charges or insur ance attributable to the delivery of articles or things or computer software outside India or the expenses, if any incurred in foreign exchange in proving the technical services outside India are to be excluded both from the export turnover and from the total turnover, which are the numerator and the denominator resp....