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Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: SHRI CHANDRA POOJARI & SHRI CHALLA NAGENDRA PRASAD
आदेश / O R D E R
PER CHANDRA POOJARI, ACCOUNTANT MEMBER
This appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-1, Chennai dated 13.07.2015 for the assessment year 2010-2011.
I.T.A.No.2010/Mds/2015 :- 2 -:
The Revenue has raised the following grounds:-
‘’2.1 The learned CIT(A) erred in directing the Assessing Officer to recomputed the deduction u/s.10B by excluding the freight expenditure both from the export turnover and from the total turnover for computation of deduction u/s.10B. 2.2 The learned CIT(A) ought to have appreciated the fact that the decision of the Special Bench of the Tribunal in the case of Sak Soft Ltd 121 TTJ 865 relied on by him has not been accepted by the department and has been contested before the high forum.’’
The facts of the case are that the assessee incurred expenditure on freight charges which are excluded from the export turnover but not excluded from total turnover. According to the Assessing Officer the expenditure should be excluded from export turnover while working out the deduction u/s.10A of the Act. The assessee carried the appeal before the Commissioner of Income Tax (Appeals).
The Commissioner of Income Tax (Appeals) placing reliance on the order of the Special bench in the case of M/s. Saksoft Ltd 121 TTJ 865 (SB) held that on the basis of parity principles, whatever has been excluded from export turnover shall also be excluded from total turnover. Accordingly, the Commissioner of Income Tax (Appeals) directed the Assessing Officer to exclude this component of freight from export turnover as well as total turnover while computing deduction u/s.10A of the Act. Against this, the Revenue is in appeal before us.
I.T.A.No.2010/Mds/2015 :- 3 -:
We have heard both the sides and perused the material on record. Admittedly, this issue was considered by the Special Bench in the case of M/s. Saksoft Ltd (cited supra) wherein it was held that expenditure on freight should be excluded from the export turnover as well as total turnover while computing deduction u/s.10A of the Act.
Being so, in our opinion the impugned order of the Commissioner of Income Tax (Appeals) is confirmed. The appeal of the Revenue is dismissed.
In result, the appeal of the Revenue in is dismissed.
Order pronounced in the open court at the time of hearing on Wednesday, the 11th of November, 2015, at Chennai.