Recently, In the case of Yokogawa India Ltd, The Supreme Court of India decided that the deduction under section 10A of the Income-tax Act, 1961, is to be determined at the point when computing the gross total income of the eligible undertaking and not in the computation of total income.

The Punjab and Haryana High Court in the case of Max India Limited it was held that services of the nature mentioned in the agreement between the taxpayer and its Associated Enterprise (AE) would not necessarily be recorded in writing. Further, the High Court observed that advice, introductions, information can be communicated orally and the possibility of the same is enhanced on account of the fact that these were group companies.