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Income Tax Appellate Tribunal, ‘C’ BENCH : CHENNAI
Before: SHRI ABRAHAM P.GEORGE & SHRI GEORGE MATHAN
आदेश / O R D E R
PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER:
These are appeals filed by the Revenue directed against an order dated 23.06.2017 of ld. Commissioner of Income Tax (Appeals)-11, Chennai for the impugned assessment years.
ITA Nos.2401 & 2402/2017 :- 2 -:
Sole grievance of the Revenue is on the directions of the ld. Commissioner of Income Tax (Appeals) to reduce the expenditure excluded from export turnover, also from total turnover while calculating the deduction available to the assessee u/s.10A of the Income Tax Act, 1961 (in short ‘’the Act’’).
Ld. Counsel for the Revenue submitted that ld. Commissioner of Income Tax (Appeals) had relied on the decision of Special Bench of the Tribunal in the case of ITO vs. M/s. Sak Soft Ltd (2009) 20 DTR
As per the ld. DR, the Revenue had not accepted this decision and has filed an appeal before the Hon’ble Jurisdictional High Court.
Per contra, ld. Authorised Representative submitted that the 4.
view taken by the Special Bench of the Tribunal in the case of Sak Soft Ltd (supra) was in line with the judgment of Hon’ble Karnataka High Court in the case of CIT vs. Tata Elxi Ltd, 349 ITR 98.
We have considered the rival contentions and perused the 5. orders of the authorities below. Hon’ble Karnataka High Court in the case of Tata Elxi Ltd, (supra) had held that expenditure excluded from export turnover in the numerator, had to excluded from the total turnover in the denominator also, while applying formula for calculating the deduction u/s.10A of the Act. This is the same view as ITA Nos.2401 & 2402/2017 :- 3 -: taken by the Special Bench of the Tribunal in the case of Sak Soft Ltd (supra). We therefore do not find any reason to interfere with the order of the ld. Commissioner of Income Tax (Appeals).
In the result, appeals of the Revenue stand dismissed.
Order pronounced on Monday, the 26th day of February, 2018, at Chennai.