TaxTMI 
TaxTMI 
2008 (10) TMI 673
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....ar Yadav:- 1. This appeal has been arising out of the order passed u/s 263 by the CIT, Bangalore dated 29-10-2007. 2. The assessee company filed its return of income on 28-11-2003 declaring a total income of ₹ 3,11,78,364/- with the concerned AO. The said return of income was processed u/s 143(1) on 16-03-2004 accepting the income returned. Subsequently, the case was selected for scrutiny ....
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....ess of export of computer software or its transmission out of India apart from providing technical services outside India in connection with the development or production of computer software. The assessee company ought to have reduced communication expenses from the export turnover for the purposes of computing deduction u/s 10A. Failure to do so, has resulted in excess claim of deduction u/s 10A....
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....anation in the return of income by which it could be held that such expenses are not to be excluded for the purpose of determining the export turnover for the purposes of section 10A. The CIT also observed that the AO has also not given any specific finding to the effect that the communication costs are not attributable to the delivery of the articles or things or computer software outside India. ....
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.... and the material available on record, we are of the view that we have been consistently taking a view on the above issue that the AO should reduce the expenditure from the export turnover and correspondingly the same should be reduced from the total turnover. Apart from this factual finding, we are of the view that for invoking the provisions u/s 263, the following two conditions have to be satis....