TMI Blog2022 (7) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... it would give rise to inadvertent, unlawful, meaningless and illogical result which would cause grave injustice to the Respondent which could have never been the intention of the legislature. Even in common parlance, when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise, any other interpretation makes the formula unworkable and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well. On the issue of expenses on technical services provided outside, we have to follow the same principle of interpretation as followed in the case of expenses of freight, teleco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) Whether Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules applies even when the assessee has not received any dividend income? 3. Today, when the appeal was taken up for consideration, the learned counsel appearing for the appellant fairly submitted that the substantial questions of law raised herein have been decided in favour of the assessee, in the decision of the Hon'ble Supreme Court in Commissioner of Income Tax vs. HCL Technologies Ltd., [(2018) 404 ITR 719 (SC)] , the relevant passage of which, is usefully extracted hereunder: 17. The similar nature of controversy, akin this case, arose before the Karnataka High Court in CIT vs. Tata Elxsi Ltd. (2012) 204 Taxman 321/17. The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice to the Respondent which could have never been the intention of the legislature. 20. Even in common parlance, when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise, any other interpretation makes the formula unworkable and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well. 21. On the issue of expenses on technical services provided outside, we have to follow the same principle of interpretation as followed in the case of expenses of freight, telecommunication etc., otherwise the formula of calculation would be futile. Hence, in the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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