2013 (1) TMI 1078

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....eals)-V, Chennai for the assessment years 2004-05 and 2005-06. As common issues are involved in these appeals, they were heard together and are being disposed of by this common order for the sake of convenience. 2. In the appeals filed by the assessee the facts in brief are that the assessee company is engaged in the business of software development. The assessee filed a return of income for the assessment year 2004-05 declaring 19,09,26,230/-. Initially the return was processed u/s 143(1) of the Income Tax Act, 1961 ('the Act' for short). Subsequently, a notice under section 143(2) was issued and the case was referred to the Transfer Pricing Officer in accordance with the provisions of sec. 92CA of the Act. The assessment was co....

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....e Tribunal, find no infirmity in the orders passed by the CIT(Appeals). Accordingly, this ground raised by the assessee for both the assessment years under consideration is dismissed. 6. The next ground raised by the assessee for the assessment year 2004-05 relates to the treatment of interest income. The assessee has received interest income earned from the deposits and the Assessing Officer has treated the same as income from 'other sources'. The assessee carried the matter in appeal before the CIT(Appeals) and submitted that the interest income had accrued on fixed deposits which had been made as per the insistence of bankers as a collateral security for overdraft facility. It was submitted that the deposits having been made for the r....

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....ground of appeal raised by the assessee is therefore partly allowed for statistical purposes. 10. Coming to the appeals filed by the Revenue for the assessment years 2004-05 and 2005-06, the ground raised by the Revenue relates to exclusion of foreign currency expenses not related to onsite software development from the export turnover for the purpose of computing deduction u/s 10A and 80HHE of the Act. The case of the assessee is that foreign expenditure which has been incurred on on-site software development activity should not be excluded from the export turnover. For the assessment year 2004-05 the assessee has claimed that the following expenses are not directly connected with the software development and export and therefore should....