Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 573 - MADRAS HIGH COURTComputation of deduction u/s 10A - Tribunal excluding the freight and insurance expenses both from the Export turnover and also from the Total turnover while computing deduction u/s 10A - HELD THAT:- As decided in M/S. CHENGEPOND TECHNOLOGIES PVT. LTD. [2021 (8) TMI 567 - MADRAS HIGH COURT] if the deductions on freight, telecommunication and insurance attributable to the delivery of computer software u/s 10A of the IT Act are allowed only in 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 Respondent which could have never been the intention of the legislature. Even in the common parlance, when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise any other interpretation makes the formula unworkable and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well - expenses incurred in foreign exchange for providing the technical services outside shall be allowed to exclude from the total turnover - Decided against the Revenue.
|