Deduction of telecommunication & travel expenditure incurred in foreign currency from Turnover for Section 10B deduction

CIT Vs HTC Global Services India Pvt. Ltd. (Madras High Court) Appellate Tribunal was not correct in confirming to reduce the expenses relating to telecommunication and travel expenses in foreign currency from the total turnover for computing deduction under Section 10B of the Income Tax Act. Further Appellate Tribunal was not right in excluding the telecommunication and travel expenditure incurred in foreign currency from the total turnover when clause (iv) to Explanation 2 to Section 10B specifically excludes the same only from the export turnover. Section 14A disallowance cannot exceed exem...