2014 (6) TMI 886

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..../2013-14, I. T. A. No. 854/2013-14, I. T. A. No.1335/2013-14, I.T.A. No. 1143/2013-14 and I. T. A. No.1287/2013-14 respectively in proceedings under section 143(3) read with section 147 of the Income-tax Act, 1961 (in short the "Act"). 2. The Revenue's identical grounds raised all cases are as follows :              "2.1 The learned Commissioner of Income-tax (Appeals) erred in directing the Assessing Officer to deduct the travel expenses incurred in foreign currency and the communication charges both from the export turnover and total turnover while computing exemption under section 10B.             2.2 It is subm....

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....eld that "export" turnover would not include freight, telecommunication charges or insurance expenses attributable to delivery of the articles or things, etc. Proceeding on this analogy, he excluded communication charges of Rs. 5,15,765 and travel expenses (incurred in foreign currency) of Rs. 14,67,878 totalling to Rs. 19,83,643 from "export" turnover only and not from the "total" turnover. 5. Aggrieved, the assessee preferred an appeal. In the lower appellate order, the Commissioner of Income-tax (Appeals) has directed the Assessing Officer to exclude the aforesaid travel expenses and communication charges both from export as well as total turnover as under :           "6.3. The Assessing....

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.... squarely covered by the order of the hon'ble Special Bench, Chennai in the case of ITO v. Sak Soft Ltd. [2009] 313 ITR (AT) 353 (Chennai) [SB], the Assessing Officer is directed to deduct the travel expenses incurred in foreign currency and the communication charges both from the export turnover and total turnover. This ground is allowed." Therefore, the Revenue is in appeal. 6. We have heard the Revenue and perused the case file. The assessee had filed a petition that director in-charge is out of station. However, no particulars in support thereof have been stated in this adjournment petition. Therefore, it is proceed ex parte. 7. Coming to the merits of the case, it is to be seen from the Revenue's grounds that its only ....