TaxTMI 
TaxTMI 
2013 (10) TMI 1395
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....thout prejudice to the other grounds of appeal preferred by the Appellant. Based on the facts and circumstances of the case and in law, the learned Assessing Officer (" AO") erred in: 1. Contending that the Chennai unit is formed by splitting up of the Hyderabad unit for the subject assessment year. Whereas on the identical set of facts, the learned AO for assessment year 2006-07 and 2007-08 held that the Chennai unit is formed by reconstruction of the Hyderabad unit. The approach adopted by the learned AO for framing the assessment for different assessment years on identical set of facts clearly indicates an inconsistency in approach and lack of proper application of mind. Based on the facts and circumstances of the case and in law, ....
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....nsurance charges incurred by the Appellant as attributable to the delivery of computer software outside India and deducting the same from the export turnover for the computation of deduction under section l0A of the Act. 6. Considering the amount of reimbursement of expenses to Virtusa Corporation, USA of Rs. 1,08,82,616 as expenditure incurred in foreign exchange in providing technical services outside India and deducting the same from the export turnover for the computation of deduction under section 10A of the Act. 7. Without prejudice to ground 5 and 6 above, ought to have appreciated that the communication charges, insurance charges and reimbursement of expenses to Virtusa Corporation, USA, if reduced from the export turnover are a....
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....f the opinion that similar issue was considered by this Tribunal in assessee's own case for A.Y. 2007-08 vide order dated 30.8.2013 in ITA No. 1962/Hyd/ 2011 wherein the Tribunal held in para 25 as follows: "25. We have considered the submissions of the parties on this issue. As can be seen from the order of the DRP, though they have accepted the fact that the Chennai unit is not formed by reconstruction of the Hyderabad unit, but, they ultimately held that Chennai Unit and Hyderabad Unit are not two distinct and independent units. However, on perusal of the aforesaid order of the coordinate Bench, we find that the issue in dispute has been set at rest and decided in favour of the assessee. Therefore, following the decision of the coordin....
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.... 40(a) (ia) and 43B, such recomputed profit shall be considered for the purpose of deduction u/s 43B. The assessee has placed his reliance on the following judgments which support the claim of the assessee: (a) The decision of this Tribunal in the case of DCIT vs. Planet Online Pvt. Ltd. in ITA No. 1016/Hyd/07 where it has been held: "Profits and gains of business is defined in section 28 and as per section 29 income referred to in section 28 shall be computed in accordance with the provisions of section 30 to 43D. From the above provisions in the statute, it thus clear that the profit of the undertaking in the case of the appellant has to be computed in accordance with the provisions of the section 30 to 43D., i.e., including the provisi....
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....d Sec. 36(1)(v) r.w.s. 2(24)(x) in the case of the employees' contribution which have been deemed to be the income of the assessee - plain consequence of the disallowance and the add back that has been made by the AO is an increase in the business profits of the assessee - Exemption under section lOA is allowable with reference to such enhanced income. 11. In view of the above discussion, the assessing officer is directed to consider the additions made above while calculating deduction u/s 10B. Accordingly the AO is directed to recompute the deduction after taking into account disallowances made above. Accordingly these grounds of the assessee are allowed." 9. In view of the above discussion, we are inclined to hold that amount of st....