TaxTMI 
TaxTMI 
2025 (7) TMI 892
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....e-learning. The assessee filed its return of income declaring total income of INR 24,73,007/- on 29.09.2010. The assessee furnished a revised return on 27.12.2011, declaring a total income of INR 6,55,876/- wherein unrealized export proceeds were excluded from export turnover and deduction u/s 10AA of the Act was recomputed. Thereafter, notice u/s 143(2) and questionnaire u/s 142(1) dated 10.10.2013 were issued. In response to the notices, Ld.AR attended the proceedings from time to time and furnished the requisite details. The assessee company was asked to explain as to why from the figure of export turnover taken by it for computation of deduction u/s 10AA, freight and telecommunication charges attributable to the delivery of services outside India be not reduced. Further the AO proposed to tax interest on term deposits as Income from Other Sources. After considering the replies of the assessee, the AO treated the interest from fixed deposits as "Income from other Sources" and held that the source is not eligible for deduction u/s 10AA of the Act and further reduced the amount of Telecommunication expenses and Recovery expenses in respect of migration / on-the-job-training servic....
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.... iii) Reviera House Furnishing 237 Taxmann 520 [Delhi] iv) Camiceraia Apparels India 103 Taxmann.com 238 [Madras] 5. He further submits that in the case of group company of the assessee Genpact India Pvt. Ltd. in ITA no.6773/Del/2019 for AY 2010-11 vide order dated 11.10.2024 while deciding the appeal of the assessee, the Co-ordinate Bench of ITAT held that interest income on fixed deposits and interest on loans given to employees are eligible for deduction u/s 10AA of the Act. 6. Per contra, the ld. DR relied upon the following decisions and requested for confirmation of action of Ld.AO & Ld.CIT(A): i) Conventional Fastners Vs. CIT 2018-TIOL-202-Supreme Court ii) CIT VS. Jyoti Apparels [2008] 166 Taxman 343 [Delhi] iii) CIT Vs. Mareena Creations [2010] 189 Taxman 71 [Delhi] iv) Pandian Chemicals Ltd Vs. CIT 129 Taxman 539 262 7. We have heard the rival contentions and perused the material available on record. Considering the facts of the case in hand and in the light of abovementioned judicial precedents, we are of the considered view that the interest income earned has to be treated as "business income" for the purposes o....
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....uction under Section 10-A or 10-B of the Act, rather than it being a special character of income entitled to Deduction from Gross Total Income under Chapter VI-A under Section 80-HH, etc. The computation of income entitled to exemption under Section 10-A or 10-B of the Act is done at the prior stage of computation of Income from Profits and Gains of Business as per Sections 28 to 44 under Part-D of Chapter IV before 'Gross Total Income' as defined under Section 80-B(5) is computed and after which the consideration of various Deductions under Chapter VI-A in Section 80HH etc. comes into picture. Therefore analogy of Chapter VI Deductions cannot be telescoped or imported in Section 10-A or 10-B of the Act. The words 'derived by an Undertaking' in Section 10-A or 10-B are different from 'derived from' employed in Section 80-HH etc. Therefore all Profits and Gains of the Undertaking including the incidental income by way of interest on Bank Deposits or Staff loans would be entitled to 100% exemption or deduction under Section 10-A and 10-B of the Act. Such interest income arises in the ordinary course of export business of the Undertaking even though not as a di....
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....16/- and Rs 60,25,09,242/- on account of migration / on- the-job-training activities relating to undertakings claiming deduction under Section 10A and 10AA of the Act respectively. It is submitted that under the overall ambit of IT/IT Enabled Services, assessee also provides business process outsourcing services to customers located outside India as well as customers located in India. Provision of business process outsourcing services involve carrying out certain back-office operations of the customers through employees employed and operating out of the STPI and SEZ units of the assessee in India. For carrying out back-office operations of the customers from India, adequate on-the-job training is required to be provided to the assessee's employees in order to enable them to understand the operations of the customers and help in migrating those operations from overseas customer locations to STPI and SEZ units located in India. In order to effect the migration of customer operations from overseas locations to India, some of the employees of the assessee having requisite experience and skill are selected to undergo on-the job training at overseas customer locations. The expenses i....