2012 (5) TMI 282

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....is appeal against the order passed by the Tribunal holding that the expenditure incurred towards communications expenses as well as travelling, boarding and conveyance expenses is to be reduced from the total turnover while computing deductions under Section 10A of the Act. 2. This question was considered by this Court in the case of CIT v. Tata Elxsi Ltd., [2012] 204 Taxman321/17 taxmann.com 1....

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....a formula to ascertain the profits from export business by apportioning the total profits of the business on the basis of turnovers. Apportionment of profits on the basis of turnover was accepted as a method of arriving at export profits. In the case of Section 80HHC, the export profit is to be derived from the total business income of the assessee, whereas in Section 10-A, the export profit is to....

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....r includes export turnover. The components of the export turnover in the numerator and the denominator cannot be different. Therefore, though there is no definition of the term 'total turnover' in Section 10-A, there is nothing in the said Section to mandate that, what is excluded from the numerator that is export turnover would nevertheless form part of the denominator. Though when a particular w....

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..... If that were the intention of the legislature, they would have expressly stated so. If they have not chosen to expressly define what the total turnover means, then, when the total turnover includes export turnover, the meaning assigned by the legislature to the export turnover is to be respected and given effect to, while interpreting the total turnover which is inclusive of the export turnover.....