2018 (7) TMI 2322
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....l has been admitted on 5.10.2012 to consider the following substantial questions of law as framed by the Revenue in the Memorandum of Appeal: "1. Whether the Tribunal was correct in holding that the telecommunication charges and expenses incurred abroad are required to be reduced from the export turnover as well as total turnover also, in the absence of any specific provisions to this effect when computing the deduction u/s 10A of the Act ? 2. Whether the Tribunal was correct in holding that the Dispute Resolution Panel has not considered the various objections raised by the assessee regarding the computation made by the Transfer Pricing Officer and consequently remitted the matter back without considering the controversy ? 3. Wheth....
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.... 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' must also be excluded from 'total turnover', since one of the components of 'total turnover' is export turnover. Any other interpretation would run counter to the legislative intent and would be impermissible. 18. XXXXXX 19. In the instant case, if the deductions on freight, telecommunication and insurance attributable to the delivery of computer software under Section 10A of the IT Act are allowed only in Export Turnover but n....
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....er to the DRP who in turn shall dispose off the assessee' objections judicially and by a speaking order. The DRP shall also take into consideration the judicial precedents on the issue and also order of the Tribunal in ITA No.1231 of 2010 dated 5/8/2011 in the case of M/s Genisys Integrating Systems India Pvt. Ltd. where similar issues have been considered. The copy of the order in the case of M/s Genisys Integrating Systems India Pvt. Ltd. shall be appended to this order." 5. The controversy involved herein is no more res integra in view of the decision of this Court in 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 th....