TaxTMI 
TaxTMI 
2019 (12) TMI 509
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....ase of Commissioner of Income Tax, Chennai V. M/s.Maars Software International Ltd., East Coast Chambers II Floor, 92, G.N.Chetty Road, T.Nagar, Chennai. 2.The relevant portion of the said Judgment is quoted for ready reference: "7. The following substantial question of law (reframed by us) is raised for resolution: 'Whether on the facts and circumstances of the case, the Tribunal was right in holding that unrealised sale proceeds in foreign exchange within the prescribed period amounting to Rs. 2,89,96,894/- had to be included in the total turnover while computing the deduction under Section 10A of the I.T. Act?' 8. Section 10A of the Act is a special provision enacted to provide for a deduction in res....
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....earned Standing Counsel appearing for the Revenue would thus contend that the amount of Rs. 2,89,96,894/-, admittedly not brought into the country within the prescribed time limit would automatically have to stand excluded from the numerator, i.e. export turnover. However, according to him, the amount constitutes turnover of the assessee and should be included in the denominator, 'total turnover'. He would argue that this treatment was in keeping with the scheme of the section that is intended to provide a benefit only for those engaged in the activity of export and gaining foreign exchange. 13. He points out that the very object of the section is to improve foreign exchange inflows into the Country and thus in a situation ....
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....nly sales proceeds actually 'received' would stand included in the ambit of 'export turnover'. However, the corresponding amendment was not made in the definition of 'total turnover'. In the aforesaid circumstances, the intention of the Legislature was clear to the effect that it would be only sale proceeds actually 'received' that would be included within the ambit of 'export turnover' in the numerator whereas, in addition to actual receipts, what was 'receivable' or 'not actually received' would also stand included within the ambit of denominator i.e, 'total turnover'. 17. This position hinges on the scheme of deduction under section 80HHC, which is specific to the p....
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.... '(iv) "export turnover" means the consideration in respect of export by the undertaking of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India; 21. The issue of whether the items reduced from 'export turnover', such as freight, telecommunication charges or insurance as provided for in the definition would also stand reduced from 'total turnover' ....
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....le and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well. 21) On the issue of expenses on technical services provided outside, we have to follow the same principle of interpretation as followed in the case of expenses of freight, telecommunication etc., otherwise the formula of calculation would be futile. Hence, in the same way, expenses incurred in foreign exchange for providing the technical services outside shall be allowed to exclude from the total turnover.' 22. Learned Counsel for the Revenue seeks to distinguish the above judgment stating that the rationale thereof would be applicable only to the items of exclusion at issue before th....