2016 (11) TMI 1670

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....P erred in law and in facts by excluding foreign exchange gain of Rs. 15,61,130/- from the profits of the business for the computation of deduction u/s.10AA of the Act. 3. The facts of the case are that the assessee sought direction from the DRP that the AO to be directed to delete the exclusion of foreign exchange expenditure of Rs. 26,15,72,828/-/- from the export turnover of the business and thereafter deduction u/s.10AA of the Act. The DRP examined the provisions of the section 10AA(i) whereby 'export turnover' means the consideration in respect of export received in or brought into India by the assessee in convertible foreign exchange but does not include freight, telecommunication charges or insurance attributable to the delivery of ....

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....865 (ITAT[Chen]). Accordingly, we direct the AO not to include the same in export turnover as well as total turnover while computing deduction u/s.10A of the Act. Accordingly, this ground of Revenue is remitted back to the file of AO to reconsider the same in the light of the above order of the Tribunal after giving an opportunity of hearing to the assessee. 5. The next issue for our consideration is that the DRP erred in directing the AO to include forex gain from profits of the business for computing deduction u/s.10Aa of the Act based on the decision of the ITAT Chennai in Changepod Tech Pvt Ltd in 118 TTJ 18(2008). 6. The facts of the issue are that the assessee went in before DRP for seeking directions that foreign exchange gain not ....