2014 (4) TMI 1224

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.... extent and unhappily worded but what we could cull out therefrom is that, the first ground relates to the adjustment contemplated by Section 10A of the Income Tax Act, 1961. The Tribunal has directed that the loss of one unit can be adjusted against the profit of another unit but after allowance of deduction under Section 10A of such profitable units. The loss of one unit under Section 10A of the Act shall be adjusted against the income liable for deduction under the same section but in relation to the income from other unit. As far as that aspect is concerned, the counsel agree that the same is answered in favour of the assessee and against the revenue. This controversy has been dealt with by a Division Bench of this Court in the case of ....

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....d that, in the present case the assessee has produced sufficient material which would prove that the costs which are attributable and which are allegedly incurred, have not been incurred in relation to the exports. The Tribunal found that the expenses have been incurred in the business of software development in India. They could not be considered as expenditure attributable to delivery of computer software outside India. Therefore, Mr.Jasani would submit that this finding of fact deserves to be sustained and in upholding the order of the Tribunal this Court should record a conclusion that the same does not raise any substantial question of law. 7 Upon perusal of paragraphs 3 and 4 of the order under challenge, we find much substance in th....

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....s not raise any substantial question of law. The primary contention was that the expenses which the Assessing officer desired to pick were not incurred in relation to export and, therefore, cannot be termed as deductions permissible from export turnover. These expenses have been incurred for the purposes of the business of software development at the software units in India. It is that finding which the Assessing officer was unable to controvert or unable to bring any contrary material to disprove the same. It is in that light that the Tribunal found that the Assessing Officer could not have insisted on the deduction. It is that exercise undertaken by the Assessing Officer which has not been upheld but rather disapproved by the Tribunal. Th....