ACIT, CHENNAI vs. SCIENTIFIC PUBLISHING SERVICES PVT. LTD., CHENNAI

The Revenue has filed this appeal challenging the order dated 30.06.2014 passed by Ld CIT(Appeals)-VI, Chennai and it relates to the assessment year 2009-10. The Revenue is aggrieved by the decision of Ld CIT(Appeals) in holding that the expenses incurred in foreign exchange and Communication charges are to be deducted both from Export turnover and Total turnover for computing deduction u/s 10B of the Act.

A perusal of the order of Ld CIT(Appeals) would show that the first appellate authority has followed the decision rendered by the Special bench of the Tribunal in the case of M/s SAK Soft Ltd (2009)(30 SOT 55)(Chennai) in holding so. The Ld CIT(Appeals) has also noticed that the Tribunal has decided an identical issue in favour of the assessee in its own appeal relating to AY 2007-08 in dated 11.5.2012, by following the Special bench decision referred above.

Under these set of facts, we do not find any infirmity in the order of Ld CIT(Appeals) in holding that the expenses incurred in foreign exchange and Communication charges are to be deducted both from Export turnover and Total turnover for computing deduction u/s 10B of the Act by following the decision of Special bench referred above.

In the result, the appeal filed by the revenue is dismissed.