2010 (6) TMI 817

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....ha, CIT-DR Assessee by: Shri P.Muralimohana Rao, CA ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER These two cross appeals are directed against the common order passed by the CIT(A) -IV, Hyderabad dated 20-10-2008 for the assessment year 2005-06. Since common issues are involved in the two appeals, they are clubbed together, heard together and disposed off vide this common order for the ....

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....deduction u/s 10B of the Act. 4. The learned Departmental Representative strongly relied on the assessment order. He submitted that since the impugned sales proceeds was not brought into India, it cannot claim deduction u/s 10B on that amount. The departmental representative further submitted that it is not disputed that sales proceeds have not been repatriated in foreign convertible exchange i....

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.... an Indian currency or in currency which is not a convertible foreign exchange. The object therefore, appears to be to encourage more inflow of convertible exchange and not the mere export of goods. Making it available with reference to the realization in convertible exchange is suggestive of the fact that it was with a view to encourage foreign exchange inflow. Under the provisions of S.10B to av....

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.... considered as on site development of software at abroad. This argument of the assessee's counsel is bereft of any merit since the branch sales cannot be equated with on site development of software which is not identical. In our humble opinion, assessee is not entitled for benefit of Sec.10B on the Branch sales and it is to be excluded both from export turnover as well as from total turnover. Acc....