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2016 (11) TMI 456 - HC - Income TaxEntitlement to claim benefit of Section 10A - Transfer of computer software by the Indian branch to the head office - whether can be said to be ‘sale’ to the head office out of India - whether as the software is developed by the branch as per the requirement of Head Office and not sold to any third party? Held that:- In this case the AO carried out the exercise mandated by Section 10A(7) read with Section 80-IA(8). Consequently the particulars of the price or cost reported by the assessee were not binding or conclusive but rather they attained finality in the assessment proceedings, after due addition. It underwent further inquiry/scrutiny under Chapter X of the Act. It is undoubtedly aphorism that a legal fiction ought to be taken to its logical conclusion and the mind should not be allowed to boggle. This merely implies that a fiction should logically take a direction; the train of thought however cannot divert elsewhere. The absence of a “deemed export” provision in Section 10A similar to the one in Section 80HHC does not logically undercut the amplitude of the expression “transfer of goods” under Section 80-IA(8) – which is now part of Section 10A. Such an interpretation would defeat Section 10A(7) entirely. Substantial questions of law framed are to be answered in favour of the assessee and against the Revenue.
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