2010 (4) TMI 1098

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....relate to solitary issue, namely, whether the CIT(A) is justified in confirming AO's action in not excluding Rs. 96,39,523/- and Rs. 2,43,763/- towards freight and insurance from the total turnover when the same was excluded from the export turnover while calculating the deduction u/s 10B of the I T Act. 3. Facts in brief are as follows:- Assessee is a company, filed its return of income on 29.11.2006 declaring income from business at NIL after claiming deduction u/s 10B of the Act amounting to Rs. 6,00,00,624/-. The deduction u/s 10B of the Act was computed by the assessee by taking both export turnover and the total turnover at Rs. 21,96,08,918/-. The assessment u/s 143(3) of the I T Act was completed on 29.12.2008 by reducing the ....

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....sp;                                                               Total turnover                                                  = 6,09,00,624 x 20,37,07,802      &nbsp....

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....se of Iseva Systems Pvt. Ltd. (ITA No.401/Bang/2007 dated 17.12.2007) following its earlier decision in the case of M/s IGate Global Solutions Ltd. v ACIT, Circle-11(3), Bangalore (ITA No.248 & 249/Bang/2007 dated 27.11.2007) that telecommunication charges which were reduced for ascertaining the export turnover are not to be considered for the purpose of total turnover in view of the fact that the total turnover is sum total of export turnover and internal turnover. From above, it also means that whatever is not included in export turnover cannot be included in that portion of total turnover which relates to export of goods. Therefore, the assessee has lawfully excluded the concerned expenditure from total turnover, since it is specifica....

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....6 (ITA No.406/Bang/2008 dated 10.7.2009), which in turn, followed the decision of the Special Bench cited supra. The relevant portion of the Tribunal's order in assessee's own case cited supra reads as follows:- "We have heard the rival contentions and perused the material available on record. On our careful perusal of the facts and circumstances of the assessee's case, our considered opinion is that now the issue stands settled by the Special Bench decision of the ITAT, Chennai in the case of ITO v Sak Soft Ltd. reported in 313 ITR (AT) 353 dated 6.3.09, therefore, does not require any further deliberation. The issue stands covered as also held by the learned CIT(A) which does not call for any further interference". Page 6 o....

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....re outside India or expenses, if any, incurred in foreign exchange in providing technical services outside India. Thus statutorily parity is maintained between export turnover and total turnover in these sections. There is no reason why such parity cannot be maintained between export turnover and total turnover in section 10B just because "total turnover" has not been defined in that section". 10. The first appellate authority has attempted to distinguish the cases cited on the basis that the word "total turnover" or "gross receipt" as it appears in section 44AB of the I T Act, 1961, based on ICAI guidance note includes all receipts including reimbursement of expenses. The context in which the words "total turnover" and "gross receipts" ....