2018 (11) TMI 1552

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.... of appeal are as under : "1. Whether on the facts and circumstances of the case, the Tri bunal is correct in directing the Assessing Officer to exclude expenses incurred in foreign currency and other expenses that has been excluded from ETO, from the total turnover also and accordingly recomputed the deduction under section 10A without appreciating the fact that there is no provision in section 10A that such expenses should be reduced from the total turnover also as clause (iv) of the Explanation 2 to section 10A provides that such expenses are to be reduced only from the export turnover ? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in excluding certain comparables on the ground of functio....

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....akin this case, arose before the Karnataka High Court in CIT v. Tata Elxsi Ltd. [2012] 349 ITR 98 (Karn) ; [2012] 204 Taxman 321 (Karn). The issue before the Karna taka High Court was whether the Tribunal was correct in holding that while computing relief under section 10A of the Income-tax Act, the amount of communication expenses should be excluded from the total turnover if the same are reduced from the export turnover ? While 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&#....

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....ribunal in the case of Syassaris Software P. Ltd. v. Deputy CIT in IT(TP)A No. 1360/Bang/2011 for the assess ment year 2005-06 by the Tribunal and the Tribunal has directed the exclusion of this company from the list of comparables, following the order of the Tribunal in the case of Kodiak Networks India Pvt. Ltd. [IT(TP)A No. 532/Bang/2015 & Co 119/Bang/2015]. A copy of order of Kodiak Networks India Pvt. Ltd. is placed on record. The relevant observations of the Tribunal are extracted hereunder for the sake of reference : . . . 13. Since the Tribunal has examined the profile and datas of Bodh tree Consulting Ltd. and has come to the conclusion that this com pany cannot be taken as good comparable for computing the arm's length price....

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....appellant, the appeal at the instance of an assessee or the Revenue under section 260A of the Act is not maintainable. The relevant portion of the said judgment is quoted below for ready reference (page 541 of 406 ITR) : "Conclusion 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 pro visions 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 Vodafo....