AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 1316
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.... the assessee in ITA No.1507/Mds,.2015 are filed against the different orders of CIT(A)-1,Chennai dated 25.02.2015 arising out of orders passed u/s.143(3) rws 92CA of the Act for the assessment year 2009-10 and 143(3) of the Act for the assessment year 2005- 06. 2. The assessee has raised common grounds in both the appeals for the assessment years 2005-06 & 2009-10. 3. The first common ground is the exclusion of expenses incurred in foreign exchange and telecommunication expenditure incurred in Indian currency from export turnover. 4. The ld.A.R submits that the Tribunal for assessment years 2002-03 & 2008-09 in assessee's own case accepted the parity of reasoning following the decision of Special Bench of Chennai Tribunal in the cas....
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.... be considered. (III) The term 'total turnover' is used in the Act at various places and the term Is defined differently under various sections In some sections, thereby making It clear that the normal meaning of the term is required to be adopted in those circumstances. 6.1 The Id. AR has given his submissions with regard to this ground as under: (a) Since the expenditure Incurred hi Ibren currency has not been Included in export turnover of the appellant In the first place, the same is not to be reduced from the export turnover. (b) Alternatively, the appellant has submitted that wham the AO has sought to exclude the expenditure in foreign currency horn the export turnover (ie numerator), the same should be excluded from the total....
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....lace, the same should not be excluded from export turnover. Alternatively, the appellant has argued that when the telecommunication expenditure incurred In foreign currency In connection with the delivery of computer software was excluded from export turnover the same should also be excluded from total turnover. 7.1 I have considered the facts of the case and the submission filed by the Id.AR of the appellant I have also gone through the decisions relied on by the Id.AR. Firstly, he has argued that as the expenditure incurred In foreign currency towards telecommunication charges has not been included In export turnover, the reduction of such expenditure from export turnover Is uncalled for. When the Id. AR was asked to justify his stand h....
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....vant portion of the CIT(A)'s order is to support our observations that there is no relevant argument which remains to be accepted. The assessee raises no plea before us that the relevant arguments were either not considered or accepted by the CIT(A) . In these circumstances, we find these grounds to be entirely misconceived. The same are accordingly rejected." Respectfully following the said order, we dismiss the ground raised by the assessee. 6. The next issue in the appeal of assessee for assessment year 2005-06 is disallowance of expenditure attributable for earning exempt income u/s.14A of the Act. Ld. A.R submits that the CIT(A) directed the AO to disallow 5% of exempt income as the expenses attributable for earning exempt income in....
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....elhi has clearly held that indirect management and administration expenses qualify for disallowance uls 14A and there is no decision so far by any similar forum contradicting the above findings. Similar view was also taken by ITAT Chennai in the case of Southern Petrochemical Industries (93 TTJ 161) as under '...Whether to invest or not to invest and whether to retain the investments or to liquidate the same are very strategic decisions which the management is called upon to take. These are mind-boggling decisions and top management Is Involved In taking these decisions. This decision-making process Is very complicated and requires very careful analysis. Moreover, the assessee had to keep track of various dividend incomes declared by the ln....