Shanti Prime Publication Pvt. Ltd.
Section 10A of the Income Tax Act, 1961-Exemption- Expenditure incurred in foreign currency not to be excluded from the export turnover.
Facts: Whether the Tribunal was correct in holding that the expenditure towards telecommunication charges and expenditure incurred in foreign currency reduced from export turnover has to be reduced from total turnover for computing deduction under section 10A in the absence of any provisions in Section 10A which requires the concerned expenses to be reduced from total turnover also?
Held, that assessee is engaged in the business of computer software development and services. The expenditure incurred in foreign currency on traveling, professional charges and onsite service charges are for development of software at clients site outside India, the assessee has neither rendered any technical services nor has earned any receipt from rendering technical services. Therefore, there is no need to exclude the expenditure incurred in foreign currency from the export turnover. Thus, substantial questions of law framed by this court are answered against the revenue and in favour of the assessee. - CIT V/s AZTEC SOFTWARE TECHNOLOGY LTD. -  29 ITCD Online 009 (KARN)