AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 617
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....sue no. 13 to 21 which required adjudication are hereby mentioned below.: - "13 The Ld. AO/DRP erred by not considering that the adjustment to the arm's length price, if any, should be limited to the lower end of the 5 percent range as the appellant has the right to exercise this option under the proviso to section 92C of the I.T. Act, 1961. Deduction u/s 10A 14. The Ld. AO/DRP erred in reworking the deduction u/s10A at Rs. 348,578,085/- as against Rs. 357,437,940/-computed by the appellant. 15. The Ld. AO/DRP erred in deducting foreign currency expenses amounting to Rs. 114,299,979/- from the Export Turnover for the purpose of computing deduction u/s 10A. 16. The Ld. AO/DRP erred deducting Insurance expenses amounting to Rs. 3,452,624 from the exportturnoverfor the purpose of computing deduction u/s 10A. 17. The Ld. AO/DRP erred in deducting telecommunication and satellite link charges amounting to Rs. 25.372,166 from the export turnover for the purpose of computing deduction u/s 10A. 18. Without prejudice to the above three grounds, the Ld. AO/DRP erred by not appreciating the fact that if the above expenses should be excluded from the export turnover then the same ....
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....gaged in development and export of computer software and not in providing technical services outside India. Assessee submitted copies of Audit Report under section 56F in respect of each of the eligible unit, wherein the Chartered Accountants had certified that CG India eligible unit was engaged in the development and export of computer software. Before the AO the assessee submitted that wordings & quot attributable to the delivery of computer software outside India quot; are not present in the second limb of the definition regarding the expenses incurred in foreign exchange. Therefore, CG India submitted that the second exclusion in respect of expenses incurred in foreign exchange would not be applicable in respect of export turnover from delivery of computer software outside India. Since, the assessee is engaged in development and export of computer software and not in provision of technical services outside India, the second exclusion would not be applicable in CG India facts at all. 31. Ld. Counsel submitted that this issue is covered by the decision of Tribunal in assessee's own case for the assessment year 2009-10wherein it is held it is similar to issue of telecommunicatio....
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....001 wherein the Hon'ble Court held, "The dispute was regarding deduction of data line costs from export turnover. The assessee incurred the data line costs and which have been worked out before the Assessing Officer. The figures are mentioned in paragraph 3 of the order of the Tribunal. The Assessing officer asked the assessee to explain why its expenditure should not be deducted from the export turnover in view of the above explanation of section 10A. The assessee explained that it was incurred in the business of development and export of computer software. The software development work was carried out in India at its development centers in India and also in some cases on sites. The assessee was not engaged in any technical services outside India. It did not incur any freight expenses. It explained that the telecommunication charges were incurred in the business of software development at the software undertakings of the assessee in India. The alternate argument was that the exercise that the assessee had undertaken was justified in the light of the law laid down by the Tribunal and particularly the Special Bench in the case of Income Tax Officer v/s Sak Soft Ltd, reported in 31....
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.... revenue authorities and direct the AO to compute the exemption as per law, keeping in view the decision of Hon'ble Bombay High Court, in the case of the assessee and other decisions cited by the AR, which are Robert Boch Engineering & Business Solutions Ltd vsDCIT, in ITA No. 412/Bang/2011 and Infosys Technologies Ltd vs DCIT reported in 109 TTJ 6731 (Bang.) 58. Ground no. 21 is allowed." 6. Since this issue has squarely covered by decision of the Hon'ble ITAT in the above mentioned cases, therefore, by honoring the observation made by the Hon'ble ITAT in the assessee's own case in ITA. Nos. 7099/M/2012 &(IT(TP) A 540/M/2014. We decide this issue in favour of the assessee against the revenue. ISSUE NO.16:- 7. Under this issue the assessee has challenged the confirmation of deduction of Insurance expenses amounting to Rs. 3,452,624/- from the Export turnover for the purpose of computing deduction u/s 10A of the Act. The Ld. Representative of the assessee has also argued that this issue has already been adjudicated by Hon'ble Bombay high court in the assessee's own case for the A.Y. 2006-07 in ITA. No.2501 of 2011 dated 30.04.2014, therefore, in the said circumstances, the ....
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....d on the deduction- It is that exercise undertaken by the Assessing Officer. which has not been upheld but rather disapproved by the Tribunal This is a finding purely on the facts and pertaining to the assessee. The facts pertaining to the assessee's business of software development, the charges and which are claimed to have incurred, are in relation to the business of software development within India. They could not be said to be costs deductible from export turnover for the purposes of Section IDA of the Act, in such circumstances, we are of the opinion that any wider controversy or larger question does not' require any answer. We can leave that aspect open/for the decision in an appropriate case. In the facts and circumstances of the present case and in relation to the business of assessee before us, it is not necessary to go into the other Contentions raised before us by the revenue." 8. Since this issue has squarely covered by decision of the Hon'ble Bombay High Court in the above mentioned case, therefore, by honoring the observation made by the Hon'ble Bombay High Court in the assessee's own case in ITA. No.2501 of 2011 dated 30.04.2014. We decide this issue in fav....
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.... be considered as expenditure attributable to delivery of computer software outside India. We therefore set aside the order of AO on this point and hold that these expenses are not to be excluded from the export turnover. 10. Thereafter, the said issue has raised before the Bombay High Court in the assessee's own case for the A.Y. 2006-07 and the finding of the Hon'ble ITAT has been upheld on the basis of the decision of the ITAT for the A.Y. 2006-07 in ITA. No.7729/M/2010 dated 25.05.2011. The Hon'ble ITAT has also decided the issue in favour of the assessee for the A.Y. 2008-09 in ITA. No.799/M/2012 and for the A.Y. 2009-10 in (IT(TP)A 540/M/2014) dated 21.11.2014. Since this issue has squarely covered by decision of the Hon'ble ITAT in the assesse's own case mentioned above (supra). Therefore, this issue is being decided in favour of the assessee against the revenue. ISSUE NO.18:- 11. This issue has been taken by the assessee in alternate ground raised before us. Since ground no 14 to 17 have been adjudicated in favour of the assessee, therefore, there is no need to decide this issue being academic in nature. ISSUE NO.19:- 12. Under this issue the assessee has decided the c....