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47. In Grounds No.42 to 46, the Assessee has projected its grievance against the action of the AO in excluding communication link and other reimbursements incentives and rewards from the export turnover while computing deduction u/s.10-A of the Act. Alternatively, the Assessee has prayed that if the aforesaid sums are excluded from the export turnover then they should also be excluded from the total turnover.

48. The assessee company had primarily two categories / methods for realizing its price (i) Time and Material Contracts, which means that the price realized is linked to the efforts for the computer software delivered and the tools and equipment used for the same; and (ii) Fixed Price Contracts, wherein the price realized is with reference to milestones for delivery of computer software. The assessee submitted that it realized in convertible foreign exchange for the export of computer software accounted under various heads viz., assets reimbursement, travel reimbursements, incentive awards and other reimbursements and deductions under section 10A, 10B and 10AA of the Act were computed by the assessee including the said amounts in the 'export turnover' of the undertakings. The assessee also received communication link reimbursements in convertible foreign exchange as a component in the realization of the sales price for the computer software exported. The assessee submitted to the Assessing Officer that the nomenclature of the reimbursement is only representative of the customers having paid the price for the computer software developed and delivered in terms of identified expenses which are reimbursed pursuant to the contract of sale of computer software and that the amounts realized in convertible foreign exchange by way of reimbursements and incentive rewards are to be included as part of 'export turnover'.

52. In Ground No.47 to 53 and 54 & 55 the Assessee has projected its grievance against the action of the AO in excluding expenses incurred in foreign currency abroad and telecommunication expenses, from the export turnover while computing deduction u/s.10-A of the Act. It is the plea of the Assessee that the learned authorities below erred in proceeding with a presumption that expenses are embedded in the export turnover whereas in appellant's case there is no dispute that the items sought to be excluded are business expenditure incurred in foreign currency for on-site development of computer software (including services for development of computer software) which were not specifically included in turnover. The learned counsel for the assessee submitted that the Assessing Officer excluded the expenditure incurred in foreign currency from 'export turnover' on the basis of the definition of 'export turnover' contained in section 10A of the Act and held that the said expenditure having been incurred in providing technical services outside India requires to be excluded from the 'export turnover'. The Assessing Officer did not agree with the contention raised by the assessee that no such expenditure is required to be excluded as it is not in the business of providing technical services but in the business of computer software. It is submitted by the learned counsel for the assessee that in spite of Tribunal's decision, of earlier years in its own case being in its favour, the DRP has concurred with and confirmed the findings of the Assessing Officer.