The Commissioner Of Income Tax – 6, Mumbai v. M/S.aftek Infosys Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.118 OF 2010 The Commissioner of Income Tax – 6, Mumbai Versus M/s.Aftek Infosys Limited ..Appellant. ..Respondent. Mrs.Padma Divakar for the appellant. Mr.P.J. Pardiwala, Senior Advocate with Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & R.M. Savant, JJ. P.C. : DATE : 6[th] December, 2010. 1.Three questions of law have been raised in this appeal. The Tribunal has quashed the order of the Commissioner of Income Tax (Appeals) passed under Section 263 of the Income Tax Act, 1961 on the ground that no prejudice would be caused to the Revenue because the assessee is a 100% EOU and even if the expenditure incurred by the assessee in foreign currency outside India in respect of testing and installation of software is to be deducted from the export turnover, then the similar amount is to be reduced from the total turnover. In such a case, as per the formula under Section 10B, the entire profit is to be allowed as deduction. The learned counsel for the Revenue is unable to controvert the findings of the Tribunal. The decision of the Tribunal is based on finding of fact. No substantial question of law arises in this appeal. The appeal is thus dismissed with no order as to costs. (R.M. Savant, J.) (J.P. Devadhar, J.)