TaxTMI 
TaxTMI 
2021 (3) TMI 493
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppeals. 2.The above appeals were admitted on the following substantial question of law: "Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the internet expenditure incurred by the assessee are excluded from export turnover should also be excluded from total turnover?" 3.When the appeals are taken up for hearing, Ms.Sriniranjani Srinivasan, learned counsel appearing for the respondent relied upon the following judgments: (i)[2018] 93 taxmann.com 33 (SC) [Commissioner of Incometax, Central - III Vs. HCL Technologies Ltd.] "... 10.The question arises here that when the particular term has not been defined in any particular section, is it ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommon parlance, when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise any other interpretation makes the formula unworkable 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 allowe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....strained to set aside the order passed by the Tribunal and answer the Substantial Question of Law No.1 in favour of the assessee." (iii)Un-reported judgment of this Bench dated 19.01.2021 dated T.C.A.Nos.1470 to 1472 of 2010 [Commissioner of Income Tax, Chennai Vs. M/s.S.R.A. Systems Ltd., No.100, Valluvar Kottam High Road, Nungambakkam, Chennai], this Bench held as follows: "... 5.As the issue of allowability of deduction under Section 10A is common to all the three Assessment Years, all the three Tax Appeals are taken up together and disposed of by this common judgment. For the Assessment Year 2000-01, the assessee had filed its return of income on 29.11.2000. The assessee claimed that it was eligible for deduct....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f, the Income Tax Appellate Tribunal "C" Bench, Chennai had dealt with the applicability of Clauses (ii) and (iii) of Section 10A(2) in its order dated 16.05.2008 in I.T.A.No.2255/Mds/06. The Tribunal, after taking into consideration the decision of Apex Court reported in 107 ITR 195 [Textile Machinery Corporation Limited Vs. CIT] held as follows: "... this is not a case of setting up of a new business, but only transfer of business place of existing business to a new place located in STPI area and thereafter, getting the approval from the authorities, the assessee become entitled to deduction under Section 10A. Merely because by shifting the business from one place to another and keeping some of the plant and machinery as those ar....