2018 (7) TMI 469

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.... law framed by the Revenue in the Memorandum of Appeal are as under: "1. Whether in the facts and circumstances of the case, the Tribunal was justified in law in directing the Assessing Officer include traveling expenses incurred in foreign currency in export turnover as well as in total turnover by following the decision of this Hon'ble Court in case of CIT V/s Tata Elxi even when said judgment has not reached finality and no such computation is prescribed under the provisions of the I.T.Act ? 2. Whether on the facts and circumstances of the case, the Tribunal was justified in law in directing TPO/AO to treat foreign exchange gain/loss as operating in nature relying on the decision in the case of assessee itself for other....

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....s 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 not from the Total Turnover then, it would give rise to inadvertent, unlawful, meaningless and illogical result which ....

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....e relevant portion of the Judgment is quoted below for ready reference: Conclusion: 55. A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation in such cases. Had it been a case of substantial question of interpretation of provisions of Double Taxation Avoidance Treaties (DTAA), interpretation of provisions of the Income Tax Act or Overriding Effect of the Treaties over the Domestic Legislations or the questions like Treaty Shopping, Base Erosion and Profit Shifting (BEPS), Transfer of Shares in Tax Havens (like in the case of Vodafone etc.), if based on relevant facts, such substantial questions of law  could  be raised before the High Court under Secti....