INCOME TAX ACT, 1961

Section 10B

Deduction under section 10B - 100 per cent export-oriented undertaking - Expenditure towards telecommunication charges and expenditure incurred in foreign currency -

Assessee had incurred telecommunication expenses and foreign currency expenses and computed the deduction under section 10B without reducing the telecommunication charges and expenditure incurred in foreign exchange from export turnover. AO recomputed the same by excluding the above expenses from export turnover and assessee received notice pay from the employees who were sent to foreign countries for sight completion of projects and who left their job on short notice by paying a sum to assessee as per agreement. AO included the above income in the total turnover for computing deduction under section 10B. Held: Issue involved in this appeal, was covered by a decision of Supreme Court in 'CIT v. HCL Technologies Ltd. (2018) 93 Taxmann.Com 33 (SC) : 2018 TaxPub(DT) 2138 (SC). Therefore, substantial question of law was answered in favour of assessee allowing the claim of deduction under section 10B.

Followed:CIT v. HCL Technologies Ltd. (2018) 93 Taxmann.Com 33 (SC) : 2018 TaxPub(DT) 2138 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 80HHC

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