Held that\u00a0 if the deductions on freight, telecommunication and insurance attributable to the delivery of computer software under section\u00a010A\u00a0of the Act were allowed only from the export turnover but not from the total turnover then, it would give rise to inadvertent, unlawful, meaningless and illogical result which would cause grave injustice to the assessee which could have never been the intention of the Legislature. When the object of the formula for computation of the deduction under section\u00a010A\u00a0was to arrive at the profits from export business, expenses excluded from the export turnover have to be excluded from total turnover also. Otherwise, any other interpretation would make the formula unworkable and absurd. Hence, deduction was to be allowed from the total turnover in the same proportion as well. In the same way, expenses incurred in foreign exchange for providing the technical services outside were to be excluded from the total turnover. (AY.2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 10A : Free trade zone-Total turnover-Deductions on freight, telecommunication and Insurance attributable to delivery of computer software to be deducted from total turnover-Expenses on provision of technical services outside India also deductible from total turnover in same proportion as from export turnover. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-35552","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9fq","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=35552"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35552\/revisions"}],"predecessor-version":[{"id":35553,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35552\/revisions\/35553"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}