2012 (5) TMI 388

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..... er - In the case of the CIT v. Tata Elxsi Ltd. [2011 -TMI - 210706 - KARNATAKA HIGH COURT ] wherein it was held that ITO v. Sak Soft Ltd.(2009 -TMI - 70680 - ITAT MADRAS-D), There should be uniformity in the ingredients of both the numerator and the denominator of the formula, Section 10-A is a beneficial section. It is intended to provide incentives to promote exports. If the export turnover in t .....

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..... ame are reduced from export turnover. 3. The said question was answered by this Court in the case of the CIT v. Tata Elxsi Ltd. [It Appeal No. 70 of 2009] and other connected matters, disposed off on 30.08.2011 by holding as under:- From the aforesaid judgments, what emerges is that, there should be uniformity in the ingredients of both the numerator and the denominator of the formula .....

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..... Even in the case of business of an undertaking, it may include export business and domestic business, in other words, export turnover and domestic turnover. The export turnover would be a component or part of a denominator, the other component being the domestic turnover. In other words, to the extent of export turnover, there would be a commonality between the numerator and the denominator of the .....

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..... inary meaning is to be attributed to the same, the said ordinary meaning to be attributed to such word is to be in conformity with the context in which it is used. When the statute prescribes a formula and in the said formula, 'export turnover' is defined, and when the 'total turnover' includes export turnover, the very same meaning given to the export turnover by the legislature i .....

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..... ion of the deduction under Section 10-A, would be as under: Profits of the business of the undertaking Export turnover [Export turnover + domestic turn over] Total turnover 4. In view of the aforesaid legal position, we do not see any merit in this appeal. Accordingly, t .....

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