DEPUTY COMMISSIONER OF INCOME-TAX, BANGALORE vs. M/S. TOSHIBA SOFTWARE INDIA PVT. LTD, BANGALORE

The revenue has raised the following grounds :

The only issue raised by the revenue in this appeal is regarding the expenses incurred in foreign currency towards telecommunication charges and other expenses from export turnover as well as total turnover for computation of deduction under Section 10A of the Income Tax Act, 1961 (in short 'the Act').

We have heard the learned D.R. as well as learned A.R. and considered the relevant material on record. We find that the issue of expenditure incurred towards telecommunication charges and other expenses in foreign currency is reduced from export turnover an equal

3 IT(TP)A No.1814/Bang/2016 amount should also be reduced from total turnover while computing the deduction under section 10A of the Act, is covered in favour of the assessee by the decision of the Hon’ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. 349 ITR 98 (Kar). The decision of Hon'ble jurisdictional High Court has been followed in a number of cases in co- ordinate benches of ITAT. Hence, this issue is decided against the revenue and in favour of assessee.

In the result, the appeal of revenue is dismissed.