TMI Blog2018 (7) TMI 1914X X X X Extracts X X X X X X X X Extracts X X X X ..... ld what is excluded from 'export turnover' must also be excluded from 'total turnover', since one of the components of 'total turnover' is export turnover. Any other interpretation would run counter to the legislative intent and would be impermissible. Maintainability of appeal u/s 260A - existence of substantial question of law - excluding comparables namely, Bodhtee Consulting Ltd, Tata Elxsi Ltd and Infosys Technology Ltd on the ground of functional dissimilarity - Tribunal directing TPO to give working capital adjustment considering the comparables after exclusion of the three companies - HELD THAT:- As decided in M/S. SOFTBRANDS INDIA P. LTD. [2018 (6) TMI 1327 - KARNATAKA HIGH COURT] unless the finding of the Tribunal is found ex f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses incurred in foreign currency and other expenses that has been excluded from ETO, from the total turnover also and accordingly recomputed the deduction under section 10A without appreciating the fact that there is no provision in sec. 10A that such expenses should be reduced from the total turnover also as clause (iv) of the Explanation 2 to Sec. 10A provides that such expenses are to be reduced only from the export turnover?' 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in excluding comparables namely, Bodhtee Consulting Ltd, Tata Elxsi Ltd and Infosys Technology Ltd on the ground of functional dissimilarity even when Transfer Pricing Officer has rightly chosen the same consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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. Any other interpretation would run counter to the legislative int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the very same order is re-produced hereunder; xxxxx 12. Observation of the Co-ordinate Bench in the very same order with regard to the comparability of M/s Infosys Ltd appears at para-26.2 of the order which is re-produced hereunder; xxxxx 13. No doubt, in so far in the case of M/s Infosys Tech. Ltd. is concerned, it was one among the many companies chosen by the assessee itself. However, in view of the special Bench decision in the case of CIT v. M/s Quark Systems Pvt. Ltd., [2010] 38 SOT 0307, which was af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a presumption with all lending or credit are having uniform interest rates as decided by the SBI. We therefore, direct the AO to give working capital adjustment considering the comparable companies after exclusion of the three companies mentioned by us at para thirteen (supra). 5. The controversy involved herein is no more res integra in view of the decision of this I.T.A. Nos.536/2015 c/w 537/2015 dated 25.06.2018 (Prl. Commissioner of 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. The relevant portion of the Judgment is quoted below for ready reference: Conclusion: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to be applied, even if such appeals are filed by the Assessees, because, there may be cases where the Tribunal giving its own reasons and findings has found certain comparables to be good comparables to arrive at an 'Arm's Length Price' in the case of the assessees with which the assessees may not be satisfied and have filed such appeals before this Court. Therefore we clarify that mere dissatisfaction with the findings of facts arrived at by the learned Tribunal is not at all a sufficient reason to invoke Section 260-A of the Act before this Court. 58. The appeals filed by the Revenue are therefore dismissed with no order as to costs. 6. In the circumstances, having heard the learned Counsel appearing for both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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