ASST.C.I.T., BANGALORE vs. M/S MCAFEE SOFTWARE (INDIA) PVT. LTD.,, BANGALORE

This is an appeal filed by the Revenue against the order of the ACIT, dt.28.01.2016, passed u/s.143(3) r.w.s.144C(13) of the Act, in pursuance to the directions of the DRP, dt.01.12.2015, , for the assessment year 2010-11.

In this appeal, the grievance of the Revenue is that the DRP directed the AO to exclude both from export turnover as well as the total turnover IT(TP)A.422/Bang/2016 Page - 2 expenses like telecommunication charges and travelling expenses of Rs.5,33,47,824/- and Rs.4,93,45,041/-, respectively, incurred in foreign currency, when the AO deducted them from the export turnover alone for working out the deduction u/s.10A of the Act.

We find that the DRP had followed the judgment of Hon’ble jurisdictional High Court in the case of Tata Elxsi Ltd v. CIT [349 ITR 98], in directing exclusion of items deducted from export turnover and from total turnover also for working out the deduction u/s.10A of the Act. Just for a reason that appeal has been filed by the Revenue against the judgment of jurisdictional High Court, would not be a reason not to follow the jurisdictional High Court’s judgment. We do not find any lacunae in the order of DRP.

In the result, appeal of the Revenue stands dismissed.