TMI Blog2018 (6) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... (10) TMI 634 - KARNATAKA HIGH COURT] affirmed by Income-tax, Central – III vs. HCL Technologies Ltd., [2018 (5) TMI 357 - SUPREME COURT] - I.T.A.No.386/2017 - - - Dated:- 18-6-2018 - Dr. Vineet Kothari And Mrs. S. Sujatha, J.J. Mr. K.V. Aravind, ADV.- For the Appellant JUDGMENT 1. Heard the learned counsel Mr. K.V. Aravind for the Appellants-Revenue. 2. The issue raised in the present appeal as to the deduction of expenditure incurred for Export Turn Over is also required to be deducted from Total Turn Over for the purpose of computing the deduction u/s.10A of the Act, the controversy is no longer res integra and is covered by the decision of the Division Bench of this Court in the case of M/s. Tata Elxsi Ltd., vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfy the requirements of export as defined under the Customs Act. However, for the purpose of Exim Policy, it is treated as deemed export . Therefore, when Section 10A of the Act was introduced to give effect to the Exim Policy, the supplies made from one STP to another STP has to be treated as deemed export because Clause 6.19 specifically provides for export through Status Holder. It provides that an EOU/EHTP/STP/BTP unit may export goods manufactured/software developed by it through other exporter or Status holder recognized under this policy or any other EOU/EHTP/STP/BTP unit. What follows from this provision is that to be eligible for exemption from payment of income tax, export should earn foreign exchange. It does not mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an 321/17/taxman.com 100/349 ITR 98. The issue before the Karnataka High Court was whether the Tribunal was correct in holding that while computing relief under Section 10A of the IT Act, the amount of communication expenses should be excluded from the total turnover if the same are reduced from the export turnover? While giving the answer to the issue, the High Court, inter-alia, held that when a particular word is not defined by the legislature and an ordinary meaning is to be attributed to it, the said ordinary meaning is to be in conformity with the context in which it is used. Hence, what is excluded from export turnover must also be excluded from total turnover , since one of the components of total turnover is export turnover. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
