TaxTMI 
TaxTMI 
2025 (3) TMI 2243
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....s.6(b) and 6(c) raised by the assessee were not addressed in the impugned order. In the interest of justice, the order dated 6/6/2024 of the Tribunal is partially recalled to the limited extent of adjudicating the ground Nos.6(b) and 6(c). Accordingly, this contention of the assessee is allowed. 10. The next issue i.e. issue No.4, raised by the assessee is relating to finding of fact and law, which is not the subject of rectification of the appeal u/s 254(2) of the Act and hence, the same is dismissed, 11. In the result, the Miscellaneous Application filed by the assessee is partly Allowed. The Registry is directed to fix the matter in due course for adjudication of ground Nos. 6(b) and 6(c), after issue the notice to both the parties". 2. Thus, this Tribunal while deciding the M.A has recalled the earlier order dated 5/8/2024 for adjudication of Ground No.6(b) and 6(c) and consequently, the appeal of the assessee has been listed for hearing and adjudication of Ground Nos. 6(b) and 6(c) which reads as under: "6(b) Without prejudice to the above, erred in not excluding the foreign exchange gain from the total turnover for the purpose of computation of d....
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.... legislature who enacts it after having regard to various facts and circumstances. It is a cardinal principle of law that the interpretation by the Court shall be done in such a way that the intention of the legislature shall prevail and no injustice occurred with the parties. The rule of harmonious construction is the thumb rule to interpretation of any statute. An interpretation which makes the enactment a consistent whole, should be the aim of the Courts and a construction which avoids inconsistency or repugnancy between the various sections or parts of the statue should be adopted. 16. In CIT v. J.H. Gotla [1985] 23 Taxman 14J/156 ITR 323 (SC) this Court has held as under: "46. Where the plain literal interpretation of a statutory provision produces a manifestly unjust result which could never have been intended by the Legislature, the Court might modify the language used by the Legislature so as to achieve the intention of the Legislature and produce a rational construction. The task of interpretation of statutory provision is an attempt to discover the intention of the Legislature from the language used.... 47 ....If the purpose of a particular prov....
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....Explanation 2(IV) of Section 10A of the IT Act + domestic sale proceeds 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 not from the Total Turnover then, it would give rise to inadvertent, unlawful, meaningless and illogical result which would cause grave injustice to the Respondent which could have never been the intention of the legislature. 20. Even in common 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....
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....ket notional gains as per the accounting standards. These gains, as observed by the Assessing Officer, are not related to the realization of export proceeds but are out of a separate activity of hedging. There is a thin line separating the gains derived out of fluctuation in foreign exchange due to late realization of export proceeds and gains arising out of hedging in foreign exchange. It is not disputed that hedging is an insurance to the assessee against fluctuations in foreign exchange but the resultant gains cannot be treated as part of export turnover. They are basically sort of speculation gains/notional gains which are not part and parcel of export activity. The Hon'ble Bangalore tribunal in the case of K. .Mohan & Co. (Exports) (P.) Ltd. [126 ITD 59], held as under: "In order to avoid risk of loss due to foreign exchange fluctuation it entered into forward contracts in respect of foreign exchange to be received as a result of export. During relevant assessment year, assessee claimed deduction under section 10B in respect of its entire income including profits derived from forward contracts - Whether since forward contracts had been taken in respect of 46 per c....