TaxTMI 
TaxTMI 
2021 (6) TMI 987
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.... by Ld. CIT(A)-14, Bengaluru and they relate to the assessment year 2009-10. At the time of hearing, both the parties submitted that the tax effect involved in the appeal filed by the revenue is less than Rs. 50 lakhs and hence, the same is not maintainable in view of the Circular No.17/2019 dated 08-08-2019 issued by CBDT. Accordingly, we dismiss the appeal of the revenue in limine. 2. We shall now take up the appeal filed by the assessee. The grounds of appeal and additional ground raised by the assessee read as under. 1. That the order of the Learned CIT(A) LTU is bad in law to the extent challenged herein. 2. Having regard to the facts, the Learned CIT(A) erred an holding that the Appellant's business is not exc....
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....e Hon'ble Bench to direct the A.O. to grant additional foreign tax credit of Rs. 1,54,40,330/-. The ground No.1 to 8 raised by the assessee relate to deduction allowed u/s 10A of the Act. The additional ground relate to granting of foreign tax credit. 3. The assessee is engaged in business of development of software, dealing in automotive components, mechanical and electronic designs, translations etc. The assessment for the year under consideration was completed by the A.O. u/s 143(3) r.w.s. 144C of the Act. 4. The first issue relates to the deduction allowed u/s 10A of the Act. The assessee claimed a deduction of Rs. 233.05 crores u/s 10A of the Act which consisted of claim of Rs. 174.94 crores in respect of STP undertaking locat....
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.... held that the unrealized sale consideration of Rs. 5,30,985/- is required to be excluded from the amount of "export turnover", while computing deduction u/s 10A of the Act. Accordingly, the A.O. allowed deduction of Rs. 183.70 crores only u/s 10A of the Act, as against the claim of Rs. 233.05 crores. 6. Before Ld. CIT(A), the assessee contended that the definition of "export turnover" given in sec.10A of the Act provides for reduction of freight, telecommunication charges and insurance attributable to delivery of articles or things or computer software outside India. The said definition provides for reduction of expenses if any, incurred in foreign exchange only in respect of proceeds received on "providing technical services outside In....
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....oftware services" and "technical services" and re-compute the deduction accordingly. The assesse is aggrieved by the decision rendered so by Ld. CIT(A). 8. The ld. A.R. submitted that the assessee is providing only "software development services" and it does not provide any technical services as observed by Ld. CIT(A). The Ld. A.R. submitted that an identical issue was examined by the coordinate bench in the assessee's own case in ITA No.412/Bang/2007 dated 22.1.2014 relating to assessment year 2007-08 and the matter has been restored to the file of Ld. CIT(A) for examining this issue afresh. In assessment year 2004-05 also, the matter was restored to the file of Ld. CIT(A) with a direction to follow the decision rendered by jurisdiction....
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....red in foreign exchange cannot be said to be one incurred by the assessee in connection with providing technical services outside India. The assessee does not claim exclusion of telecommunication charges or insurance attributable to the delivery of software outside India. The claim for exclusion from the export turnover is made by the assessee only in respect of expenses incurred in foreign currency in providing technical services outside India. We however do not have the break-up of the item of expenditure incurred in foreign currency outside India. A copy of the agreement between the Assessee and Robert Bosch, Germany titled software project agreement (SPA) has been filed before us. We do not know as to whether the entire export ....
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....view taken in the above said two years in the assessee's own case, we set aside the order passed by Ld. CIT(A) on this issue and restore the same to his file for examining it afresh on similar lines. 12. The next issue is whether the amount deducted from export turnover is also required to be deducted from total turnover or not. Since this issue is related to computation of deduction u/s 10A, this issue also restored to the file of the Ld. CIT(A) with the direction to follow the decision rendered by Hon'ble Karnataka High Court in the case of Tata Elixi Ltd., and also decision rendered by Hon'ble Supreme Court in the case of HCL Technologies Ltd. 13. The next issue relates to deduction of unrealized amount of Rs. 5,30,985/- from th....