9911796707
TMI Blog2018 (7) TMI 2322X X X X Extracts X X X X X X X X Extracts X X X X ..... al has been admitted on 5.10.2012 to consider the following substantial questions of law as framed by the Revenue in the Memorandum of Appeal: "1. Whether the Tribunal was correct in holding that the telecommunication charges and expenses incurred abroad are required to be reduced from the export turnover as well as total turnover also, in the absence of any specific provisions to this effect when computing the deduction u/s 10A of the Act ? 2. Whether the Tribunal was correct in holding that the Dispute Resolution Panel has not considered the various objections raised by the assessee regarding the computation made by the Transfer Pricing Officer and consequently remitted the matter back without considering the controversy ? 3. Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 intent and would be impermissible. 18. XXXXXX 19. In the instant case, if the deductions on freight, telecommunication and insurance attributable to the delivery of computer software under Section 10A of the IT Act are allowed only in Export Turnover but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter to the DRP who in turn shall dispose off the assessee' objections judicially and by a speaking order. The DRP shall also take into consideration the judicial precedents on the issue and also order of the Tribunal in ITA No.1231 of 2010 dated 5/8/2011 in the case of M/s Genisys Integrating Systems India Pvt. Ltd. where similar issues have been considered. The copy of the order in the case of M/s Genisys Integrating Systems India Pvt. Ltd. shall be appended to this order." 5. The controversy involved herein is no more res integra in view of the decision of this Court in 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and thus the appeals filed by the Revenue are found to be devoid of merit and the same are liable to be dismissed. 57. We make it clear that the same yardsticks and parameters will have 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 Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
