2012 (5) TMI 826

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....xcluding the same from the export turnover for computing deduction u/s 10B of the Act. 3. The brief facts of the case are that the assessee had debited ₹ 57,02,457/- towards telecommunication charges in the Profit & Loss Account. The assessee submitted before the Assessing Officer that if the telecommunication charges are to be excluded from export turnover the same should be excluded from the total turnover of the undertaking, to properly computing the deduction u/s 10B. The assessee relied on the decision of the Chennai 'D' Special Bench of the Tribunal in the case of ITO vs Sak Soft Ltd, [2009] 121 TTJ (Chennai) (SB) 865 wherein the Tribunal held that expenditure excluded from the export turnover should also be excluded from tota....

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....nai Special Bench in the case of Sak Soft Ltd (supra). We find that on the similar issue and on similar facts of the case, the Tribunal has held as under: "If the rule of casus omissus were to be applied to the present case, it would mean that since the words 'total turnover' have not been defined for the purpose of s. lOB their meaning cannot be supplied at all. which will result in absurdity and make the formula prescribed by sub-so (4) unworkable. This will result in the whole section becoming unworkable, a consequence which cannot be countenanced at all under any circumstances. The interpretation which is being placed on the words 'total turnover', takes due note of the other provisions in the section, such as the def....