TaxTMI 
TaxTMI 
2015 (2) TMI 247
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....to TPO and on the advice/order given by TPO, arms length price was determined. Assessee objected before DRP and DRP gave partial relief on the issue of T.P. adjustments. Assessee is not objecting to such adjustments. However, one of the issue which was agitated before DRP is of excluding the expenditure of Rs. 75,77,529 as part of export turnover invoking Explanation-2(iii) to section 10B of the Act by A.O., while calculating the deduction under section 10B. It was the contention by assessee that this expenditure has been incurred for delivering the software services outside India by the applicant and not accessing the internet. DRP, however, did not agree with that contention. Assessee made the alternate claim that once the expenditure is ....
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.... Section lO-A is a beneficial section. It is intended to provide incentives to promote section. It is intended to provide incentives to promote exports. The incentive is to exempt profits relatable to exports. In the case of combined business of an assessee, having export business and domestic business, the legislature intended to have 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 8OHHC, the export profit is to be derived from the total business income of the assessee, whereas in Section lO-A, the export profit is to be derived ....
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.... when the 'total turnover' includes export turnover, the very same meaning given to the export turnover by the legislature is to be adopted while understanding the meaning of the total turnover, when the total turnover includes export turnover. If what is excluded in computing the export turnover is included while arriving at the total turnover, when the export turnover is a component of total turnover, such an interpretation would run counter to the legislative intent and impermissible. 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 legisla....
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....he impugned issue of inclusion/exclusion, the judgments pronounced in the context of section 80HHC are equally relevant for the applicability of the section 10A and in fact section 10B too. These are the beneficial provisions and there is need for explaining them to the advantage of the assessee. It is not that all times the inclusions help the assessee. Some time exclusions help too. Therefore, depending on the facts of the each of the cases, the said inclusion or exclusion needs to be decided. But, in all cases, the principle of parity in matters of inclusion or exclusion has to be maintained." 8. Similarly, in the case of ITO vs. M/s. Sak Soft Limited reported in (2009) 20 DTR 514 Special Bench of the Tribunal has held that while comput....
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....ting of TDS and advance tax and levy of adjusting interest under 244A of the Act. It was the contention that without giving opportunity to assessee A.O. has given credit to the TDS of only Rs. 4,18,312 as against Rs. 8,65,898 claimed by assessee and as against Rs. 1,89,00,000 claimed as advance tax, the final order dated 26.10.2012 gave credit for Rs. 1,69,33,680. Since no opportunity was given to assessee, there was short grant of Rs. 24,13,406 and corresponding levy of interest. In support of claim, Ld. Counsel placed on record Form 26AS indicating that the claims are supported by Form 26AS of the department. In respect of this, as A.O. has given less credit Assessee wants direction on this. 4.1. As seen from the Form 26AS as well as the....