2018 (7) TMI 1914

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....ib.). 2. Though this Appeal was admitted on 28.11.2017 to consider the substantial questions of law framed at paras VI(2) and VI(3) by the Revenue in the Memorandum of Appeal, learned counsel for the appellant submits that even substantial question No.1 also may be considered as it is covered by the decision of the Hon'ble Supreme Court in CIT v. HCL Technologies Ltd. [2018] 404 ITR 719 (SC). The substantial questions of law as framed by the Revenue in the Memorandum of Appeal are as under: "1. Whether on the facts and circumstances of the case, the Tribunal 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 an....

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....a and is covered by the decision of the Division Bench of this Court in the case of Tata Elxsi Ltd. v. Asstt. CIT [IT Appeal No. 411 of 2008, dated 20-10-2014], which has been affirmed by the Hon'ble Supreme Court in the case of HCL Technologies Ltd. (supra). The relevant portion of the judgment of the Hon'ble Supreme Court in the case of HCL Technologies Ltd. (supra), is quoted below for ready reference:- "17. The similar nature of controversy, akin this case, arose before the Karnataka High Court in CIT v. Tata Elxsi Ltd. [2012] 349 ITR 98. The issue before the Karnataka High Court was whether the Tribunal was correct in holding that while computing relief under Section 10A of the IT Act, the amount of communication expenses sh....

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....nal, after discussing the rival contentions of both the Appellant-Revenue and Respondent-Assessee, has returned a finding with regard to question Nos. 2 and 3 as under: "10. Vis-à-vis M/s Bodhtre Consulting Ltd, the observation of this Tribunal as it appeared at page No.26.1 of the order in the case of M/s Cisco Systems (Ind.) Pvt. Ltd. read as under;                                                                 &n....

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....p;                                                                               xxxxx 13. No doubt, in so far in the case of M/s Infosys Tech. Ltd. is concerned, it was one among the many companies chosen by the assessee itself. However, in view of the special Bench decision in the case of CIT v. M/s Quark Systems Pvt. Ltd., [2010] 38 SOT 0307, which was ....

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.... a presumption with all lending or credit are having uniform interest rates as decided by the SBI. We therefore, direct the AO to give working capital adjustment considering the comparable companies after exclusion of the three companies mentioned by us at para thirteen (supra)." 5. The controversy involved herein is no more res integra in view of the decision of this 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 the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable. The relevant portion of the Judgment is quoted below for ready reference: "Conclusion: 55. A s....