Deduction under s 10A

Expenditure incurred in foreign exchange is to be reduced from the total turnover while computing the deduction under s 10A, as held by HydTrib in Navayuga Infotech Pvt Ltd v Dy CIT — In favour of: The assessee (partly); ITA Nos 1087 to 1092/Hyd/09 and 1099/Hyd/09: (AYs 2002–2003 to 2006–2007).

Expenditure incurred on foreign travel, spent in foreign exchange, is to be reduced from the export turnover for the purpose of the computation of the deduction under s 10A.

Interest on term deposits, profit on exchange variation, etc, do not form part of the profits and gains derived from the industrial undertakings qualifying for the exemption under s 10A.

Decided on: 11 February 2011.