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2021 (2) TMI 988 - HC - Income TaxComputation of the deduction u/s 10-A - Whether tribunal was right in holding that for the purpose of applying the formula under sub-section (4) of section 10A, the freight, telecom charges, or insurance attributable to delivery of articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India ought to be excluded both from the export turnover and from total turnover even though the statue has provided for such exclusion only from the export turnover? - HELD THAT:- The issue involved in the present appeals is covered by the decision of the Hon'ble Supreme Court of India in M/S MPHASIS LTD. (FORMERLY KNOWN AS MPHASIS BFL LTD.[2019 (11) TMI 1383 - SUPREME COURT] wherein in agreement that M/S MPHASIS LTD. (FORMERLY KNOWN AS MPHASIS BFL LTD.) [2019 (2) TMI 122 - SC ORDER] preferred by the Revenue in respect of connected which was disposed of by the very same common Order [2014 (8) TMI 690 - KARNATAKA HIGH COURT] having taken note similar grounds raised in the special leave petition wherein the decision in Commissioner of Income-Tax And Another Vs. Tata Elxsi Ltd.[2011 (8) TMI 782 - KARNATAKA HIGH COURT] relied that if the export turnover in the numerator is to be arrived at after excluding certain expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. The reason being the total turnover includes export turnover - The components of the export turnover in the numerator and the denominator cannot be different - there is no definition of the term 'total turnover' in Section 10-A, there is nothing in the said Section to mandate that, what is excluded from the numerator that is export turnover would nevertheless form part of the denominator - If what is excluded in computing the export turnover is included while arriving at the total turnover, when the export turnover is a component of total turnover, such an interpretation would run counter to the legislative intent and impermissible - If that were the intention of the legislature, they would have expressly stated so - If they have not chosen to expressly define what the total turnover means, then, when the total turnover includes export turnover, the meaning assigned by the legislature to the export turnover is to be respected and given effect to, while interpreting the total turnover which is inclusive of the export turnover - Decided against Revenue.
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