TaxTMI 
TaxTMI 
2018 (7) TMI 2168
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....ange and forward contract gain net of Rs. 8,38,66,140/-. 2. On the facts and circumstances of the case the Ld. CIT (A)-44 has erred in allowing that the telecommunication expenses of Rs. 11,64,517/- should also be reduced from total turnover for the purpose of computing deduction u/s 10AA of the Income-tax Act. 3. On the facts and circumstances of the case the Ld. CIT (A)-44 has erred in allowing/reducing the migration/on the job training expenses of Rs. 9,76,13,893/- from the total turnover for the purpose of computing deduction u/s 10AA. 4. On the facts and circumstances of the case the Ld. CIT (A)-44 has erred in allowing interest at the rate of LIBOR + 1.5% instead of 16% rate of interest charged on the delaye....
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....over holding that freight or telecommunication charges are not attributable to the delivery of the services outside India and therefore they are required to be reduced from the total turnover. 4. Based on this, the deduction under section 10 AA was computed at Rs. 3 3157 8603/- and foreign exchange gain and forward contracts gain of Rs. 8 386 6140 were taken as other business income and thereby the total income of the assessee was computed at Rs. 11642 0570/- vide order under section 143 (3) read with section 144C (3) of the income tax act on 16/5/2013. 5. Against the order of the Ld. assessing officer assessee aggrieved preferred an appeal before the Ld. CIT - A who partly allowed the appeal of the assessee and therefore the revenue ....
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....due to the hedging activity and is not derived by the specified business activity of the assessee. The Ld. CIT - A has allowed the claim of the assessee based on the order of the Commissioner of appeals in case of the assessee for assessment year 2002 - 03 wherein the question of the eligibility of foreign exchange and forward contract gains for deduction under section 10 A of the act has been decided in favour of the assessee. Further the identical issue is also been decided in favour of the assessee for assessment year 2008 - 09. In the case of CIT v. Gem Plus Jewellery India Ltd. reported in (2010) 233 CTR (Bom) 248, the Hon'ble High Court of Bombay has ruled that Gain from fluctuation of foreign exchange is directly related with the exp....
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....cision of the Hon'ble Delhi High Court in case of Gen Pact India and decision of Karnataka High Court in case of Dell international services India private limited and Samsung electronics Co Ltd. However the Ld. assessing officer rejected the explanation of the assessee and held that telecommunication expenditure of Rs. 116 4517 are reduced from export turnover only and will remain included in the total turnover. The Ld. CIT - A relying upon the decision of the Hon'ble Delhi High Court in ITA No. 1519/2010 in the case of Gen pact India wherein it has been held that there should be Uniformity in the ingredients of both the numerator and denominator in the formula for computation of deduction under section 10 A of the income tax act. Therefore....
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.... assessing officer rejected the contention of the assessee and held that expense of Rs. 9 761 3893 is required to be at reduced from export turnover but will remain included in the total turnover. The Ld. CIT - A rejected the finding of the Ld. assessing officer holding that the Hon'ble Delhi High Court in Karnataka High Court has taken a view that numerator and denominator should be same. The above view is the correct view otherwise the profit eligible for deduction will give a distorted picture. The detailed finding of been given by the Ld. CIT - A in para No. 6 of his order. We do not find any infirmity in the order of the Ld. CIT - A and therefore the ground No. 3 of the appeal of the revenue is dismissed. 11. The ground No. 4 of the....