DCIT, CHENNAI vs. AMEC FOSTER WHEELER INDIA PRIVATE LIMITED, CHENNAI

This appeal of the revenue is directed against the order of the CIT(A) -1, Chennai dated 09.03.2016 and pertains to Assessment Year 2010-11.

The only issue arises for consideration is exclusion of telecommunication expenses both from export turnover and total turnover for the purpose of computation of deduction under Section 10A of the Act.

Shri A.V.Sreekanth, the learned department representative submitted that the assessing officer executed telecommunication expenses from the export turnover. On appeal by the assessee, the CIT(A) by placing reliance on the special bench decision of this Tribunal, directed the assessing officer to exclude the telecommunication expenses from the export turnover also.

We heard Shri Sriram Seshadri, the learned representative for the assessee also. The learned representative for the assessee submitted that for the purpose of computing eligible deduction under Section 10A, this Tribunal is of the considered opinion that the denominator and numerator shall be of the same factor. Once the telecommunication expenses included in the total turnover, the same shall also be included in the export turnover. However, the assessing officer included the telecommunication expenses in the export turnover and excluded the same from the total turnover. Therefore, this Tribunal is of the considered opinion that the CIT(A) has rightly found that the telecommunication expenses has to be excluded both from the export turnover and the total turnover. Therefore, this Tribunal do not find any reason to interfere with the order of the CIT(A) and accordingly, the same is confirmed.

In the result, the appeal of the revenue stands dismissed.