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The Tax Publishers2019 TaxPub(DT) 2307 (Bom-HC) : (2019) 307 CTR 0588 INCOME TAX ACT, 1961
Section 10A
Expenditure incurred in foreign exchange on communication/internet charges would be excluded from 'total turnover' for working out the deduction under section 10A.
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Deduction under section 10A - Undertaking under free trade zone - Computation of total turnover - Treatment of expenditure incurred in foreign exchange on communication/internet charges
Issue under consideration was whether Tribunal was right in excluding the expenditure incurred in foreign exchange and communication/internet charges from 'total turnover' for working out the deduction under section 10A. Held: In view of Supreme Court decision in the case of CIT v. HCL Technologies Ltd. & Ors. (2018) 302 CTR (SC) 191: 2018 TaxPub(DT) 2138 (SC), expenditure incurred in foreign exchange on communication/internet charges are to be excluded from 'total turnover' for working out the deduction under section 10A. Hence, Tribunal was right in excluding the expenditure incurred in foreign exchange and communication/internet charges from 'total turnover' for working out the deduction under section 10A.
Followed:CIT v. HCL Technologies Ltd. & Ors. (2018) 302 CTR (SC) 191: 2018 TaxPub(DT) 2138 (SC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2005-06
INCOME TAX ACT, 1961
Section 92C
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