AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 316
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....oner of Income Tax (A)-III, Chennai dated 20.03.2014 in ITA No.884, 978 & 1350/2013-14 passed under Sec.143 (3) read with section Sec. 250 of the Act. Since the issues in all the appeals of the Revenue and the cross objections of the assessee are common in nature, they are clubbed & heard together and disposed of by this common order for the sake of convenience. 2.1 The grounds raised by Revenue in all the three assessment years are concised herein below for adjudication. For A.Y 2005-06 2.1.1. The Ld. CIT(A) had erred in deleting the addition made by the Ld. A.O which has resulted due to the exclusion of Rs. 47,46,818/- (being 50% of expenses incurred on leased lines communication which is treated as expenses incurred for delivery of....
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.... expenses of Rs. 7,12,303/- from the export turnover for the purpose of computing deduction U/s.10A of the Act, thought the same was not forming part of the export invoice and also failed to deduct the same from the total turnover. 3. The brief facts of the case are that the assessee is engaged in the business of providing services relating to development and maintenance of telecom software solutions and information technology enable services, filed its return of income on 29.10.2005, 06.10.2006 & 29.10.2007 admitting its total income as Rs. 22,58,930/-, Rs. 27,81,140/- & Rs. 3,798,806/- for assessment years 2005-06, 2006-07 & 2007-08 respectively. Subsequently, the case was selected for scrutiny and the assessment orders u/s.143(3) of t....
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....al aspects of the case and the principles of interpretation of statutes narrated above, I am of the opinion that section 1 0A does not provide for excluding the expenses incurred in foreign exchange from the total turnover. Whenever, a term is not defined in the section, only its plain meaning should be considered. A plain meaning of 'total turnover' does not exclude the expenses irrespective of whether such expenses were incurred in Indian currency or in foreign exchange. If the intention of the legislature was what the assesses wants to plead, then, there was necessity of defining 'Export Turnover', because both will always be equal except to the extent of domestic receipts. If that was so then the definition of 'export turnover' have ....
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.....R. relied on the order of the Ld. CIT (A) and the decisions cited by the Ld. CIT (A). 4.4. We have heard both the parties and carefully perused the materials available on record. Explanation-2 (iv) of Section-10A provides that for the purpose of this section (iv) "export turnover" means the consideration in respect of export [by the undertaking] of articles or things or computer software received in, or brought into India by the assessee in convertible foreign exchange in accordance with subsection (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expen....
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....xport turnover has to be also deducted from the total turnover while computing deduction U/s.10A of the Act. Accordingly, we agree with the alternative prayer made by the Ld. A.R. 5.1 Ground No.2 - Disallowance of the contribution made to unapproved Gratuity Fund (A.Y 2006-07) During the course of assessment proceedings the Ld. Assessing Officer observed that the assessee had paid Rs. 32,08,009/- to LIC towards unapproved Gratuity Fund. The assessee explained that application for the approval of the Gratuity Fund was filed before the income tax department as per the provisions of the Act and the same was in the process of getting approval. Since the approval was not granted when the payment was made, the Ld. Assessing Officer disallow....
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....penditure was incurred by the assessee to facilitate the employees of the company, therefore it is an expenditure incurred for the purpose of the business of the assessee. On appeal, the Ld. CIT (A) concurred with the view of the Ld. Assessing Officer. Both the parties argued in support of their contentions before us. However on examining the issue, we find that the entire payment of group mediclaim paid by the assessee was to keep the staff of the assessee in good spirits and secured, and to motivate them to perform their duties in the organization with full vigor which will only supplement to the prudent management of the human resources in the organization to increase productivity and profit. Hence, these expenses are directly attributab....