TMI Blog2021 (9) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... s Centre of Excellence Private Limited v. Commissioner of Income Tax and another [ 2021 (3) TMI 138 - SUPREME COURT] has held in favour of the assessee. Deduction u/s 10A - expenses incurred in relation to travel in foreign country and communication charges are to be allowed both from the Export turnover and Total turnover - HELD THAT:- Question answered against the Revenue in the case of Commissioner of Income-tax, Central-III v. HCL Technologies Ltd. [ 2018 (5) TMI 357 - SUPREME COURT] As held that the definition of 'total turnover' given under Sections 80HHC and 80HHE cannot be adopted for the purpose of Section 10A as technical meaning of total turnover, which does not envisage reduction of any expenses from total am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment received? 3.Whether the Tribunal was right in holding that the amounts paid by the assessee company to the non resident company for use of the assessee customer in India of operating net work payments, ATMs is not Royalty as per the provisions of Section 9(1)(vi) of the Income Tax Act? 4.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that payments made to two companies no TDS is required to be deducted under Section 195 of the Income Tax Act? 5.Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenses incurred in relation to travel in foreign country and communication charges are to be allowed both f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egory concerns cases wherein the distributor happens to be a foreign, non-resident vendor, who, after purchasing software from a foreign, nonresident seller, resells the same to resident Indian distributors or end-users. iv) The fourth category includes cases wherein computer software is affixed onto hardware and is sold as an integrated unit/equipment by foreign, non-resident suppliers to resident Indian distributors or end-users. 6.After elaborately considering the entire issues, the Hon'ble Supreme Court held as follows : 172. Given the definition of royalties contained in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tantial questions of law Nos.1 to 4 are answered against the Revenue. 8.Insofar as the substantial questions of law Nos.5 and 6 are concerned, the same have to be answered against the Revenue by following the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax, Central-III v. HCL Technologies Ltd. reported in ( 2018) 93 taxmann.com 33 (SC). 9.In the said decision, it was held that the definition of 'total turnover' given under Sections 80HHC and 80HHE cannot be adopted for the purpose of Section 10A as technical meaning of total turnover, which does not envisage reduction of any expenses from total amount, is to be taken into consideration for computing deduction under Section 10A; when m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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