2020 (8) TMI 769

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....8. The appeal was admitted by a bench of this Court vide order dated 03.07.2013 on the following substantial question of law: (i) Whether the appellate authorities were correct in holding that he expenditure incurred in foreign currency reduced from export turnover has to be reduced from total turnover for computing deduction under Section 10B of the Act in the absence of any provisions in Section 10B of the Act which requires the concerned expenses to be reduced from total turnover also? (ii) Whether the Tribunal was correct in holding that the deduction under Section 10B of the Act, is to be computed without setting off of brought forward business loss and unabsorbed depreciation without taking into consideration the ame....

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....ed 09.01.2012 inter alia held that expenditure in foreign exchange reduced from export turnover has to be reduced from total turnover and unabsorbed depreciation and brought forward losses cannot be set off while computing deduction under Section 10B of the Act. It was further held that expenditure on software is revenue expenditure. Accordingly, the appeal preferred by the assessee was partly allowed. Being aggrieved, the assessee as well as revenue filed an appeal before Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal', for short). The Tribunal by an order dated 11.01.2013 inter alia held that expenditure in foreign exchange reduced from export turnover has to be reduced from total turnover also. The Tribun....

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....4) 50 TAXMANN.COM 275(KARNATAKA). 4. On the other hand, learned counsel for the assessee while inviting the attention of this court to para 6.3 of the order passed by the Commissioner of Income Tax (Appeals) has submitted that the Commissioner of Income Tax (Appeals) has recorded a finding that the software purchased is in the nature of application software, the licences for which enable the holder to exercise the right to use the software. In view of the aforesaid finding, the third substantial question of law also deserves to be answered against the revenue. 5. We have considered the submissions made by learned counsel on both the sides and have perused the record. In para 6.3 of the order dated 09.01.2012 passed by the Commissioner....