2018 (7) TMI 2374

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....B', Bangalore in IT[TP]A No. 1376/Bang/2014 dated 17.04.2015, relating to the Assessment Year 2009-10. 2. This Appeal has been admitted on 24.11.2015 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 foreign exchange loss/gain is operating in nature, without ascertaining the nexus of the forex gain/loss with the business activity of the assessee and without appreciating that such loss/gain though attributable to the operating activity is not derived from the operating activity? 2. Whether the Tribunal was right in concluding that forex gain/loss are to be treated as operating in nature without appreciating tha....

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....ver if the same are reduced from the export turnover? While 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 un....

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.... Ltd. in IT(TP)A No.70/Bang/2014 dt.21.8.2014 wherein at para 11 thereof it has been held as under :- xxx xxx xxx Following the decision of the co-ordinate benches of this Tribunal in the case of Sap Labs India (Pvt.) Ltd. (surpa), Triology E Business Software India Pvt. Ltd. (supra) and Mindteck (India) Ltd. (supra), we hold that operating revenue should be computed by including the foreign exchange gain. Consequently, the grounds at S.Nos.2 to 4 raised by revenue are dismissed." 6. 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/s. M/s. Softbrands India Pvt. Ltd.,] wherein it has....