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TMI Blog2018 (7) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ax - v- M/s.Hewlett Packard Global Soft Pvt. Ltd. vs.) for A.Y.2008-09. 2. The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- "1. Whether in the facts and circumstances of the case, the Tribunal is right in law in directing the assessing officer to re-calculate the deduction allowable to the assessee under section 10A of the Act by reducing the total turnover also by the same amount by which export turnover was reduced by the assessing officer in respect of foreign currency expenses incurred towards technical services rendered outside India, without appreciating the fact that there is no provision in Section 10A that such expenses should be reduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ronics Software Systems Ltd and Gate Global Solutions Ltd on the ground of having turnover of more than 10 times of the assessee by following its earlier order even when said order has not reached finality ?" 3. Regarding substantial question of law No.1:- Learned counsel for the Appellants-Revenue Mr. K.V. Aravind submits that he does not press the 1st substantial question of law, as the issue regarding 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. Asst. Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irements 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 that the under ..... 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 ..... Income Tax & Anr. -v- M/s Softbrands India Pvt. Ltd.,) wherein it has been observed that unless the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable. 6. The relevant portion of the aforesaid judgment is quoted below for ready reference:- "Conclusion: 55. A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation in such cases. Had it been a case of substantial question of interpretation of provisions of Double Taxation Avoidance Treaties (DTAA), interpretation of provisions of the Income Tax Act or Overriding Effect of the Treaties over the Domestic Legislations or the questions like Treaty Shopping, Base Erosion and Profit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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