Case Law Details
DCIT Vs Mindtree Limited (ITAT Bangalore)
ITAT Bangalore held that insurance charges incurred by the assesse are not attributable to delivery/ export of computer software outside India and hence cannot be included in export turnover.
Facts- The assessee is a company engaged in the business of software development, consultancy services, etc. For AY 2014-15 return of income was filed on 27.11.2014 declaring income of Rs.332,23,05,8230/- under the normal provisions of the Income Tax Act, 1961 (the Act) and Rs.563,74,68,310/- u/s. 115JB of the Act, after claiming deduction u/s. 10AA of the Act amounting to Rs.211,80,72,024/-.
The assessment was concluded u/s. 143(3) of the Act vide order dated 20.12.2016 by denying claim of depreciation on goodwill; denying claim of allowance towards provision for discounts of Rs.29,00,00,000/- without however considering the enhanced income for deduction u/s. 10AA; excluding insurance charges of Rs.2,53,00,297/- from export turnover in computing u/s. 10AA of the Act and excluding telecommunication charges of Rs.7,98,45,983/- from export turnover in computing deduction u/s. 10AA of the Act.
Aggrieved by the assessment order the assessee filed appeal before the first appellate authority. The CIT(A) vide the impugned order dated 28.09.2022 partly allowed the appeal of the assessee.
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