9911796707
TMI Blog2018 (7) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... ny substantial question of law and the suggested substantial questions of law do not meet the requirements of Section 260-A of the Act and thus the appeals filed by the Revenue are found to be devoid of merit and the same are liable to be dismissed. See Prl. Commissioner of Income Tax & Anr. –v- M/s Softbrands India Pvt. Ltd. (2018 (6) TMI 1327 - KARNATAKA HIGH COURT) - no substantial question of law arises - I.T.A. No. 349/2017 - - - Dated:- 28-6-2018 - DR. Vineet Kothari And Mrs. S. Sujatha, J.J. Sri. Aravind K.V., Adv.- For the Appellant Smt : Tanmayee Rajkumar, Adv.- For the Respondent JUDGMENT 1. The Appellants-Revenue have filed this appeal u/s.260A of the Income Tax Act, 1961, raising purportedly certain substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese companies on the basis of specific facts brought on record by the TPO in the case of the assessee ? 3. Whether on the facts and in the circumstances, the in the case of Tribunal in the case of Relq Software Pvt. Ltd, is right in law in excludig comparables namely, Avani Cincom Technologies Ltd, Celestial Biolabs Ltd, Tata Elxsi Ltd, Wipro Ltd, LGS Global Ltd, E-Zest Solutions Ltd and Kals information Systems Ltd on the ground of functional dissimilarity by following its earlier order in case of assessee itself even when said order has not reached finality and without doing any FAR analysis of the assessee with those other cases and without appreciating that comparability of these companies on the basis of specific facts brought on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputer software. Secondly, the said export may be done directly by him or through other exporter after fulfilling the conditions mentioned therein. Thirdly, such an export should yield foreign exchange which should be brought into the country. If all these three conditions are fulfilled, then the object of enacting Section 10A is fulfilled and the assessee would be entitled to the benefit of exemption from payment of Income Tax Act on the profits and gains derived by the Undertaking from the export. 21. Clause 6.11 of Exim Policy dealing with entitlement for supplies from the DTA states that supplies from the DTA to EOU/EHTP/STP/BTP units will be regarded as deemed export , besides being eligible for relevant entitlements under parag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the finding of the authorities that the assessee has not directly exported the computer software outside country and because it supplied the software to another STP unit, which though exported and foreign exchange received was not treated as an export and was held to be not entitled to the benefit is unsustainable in law. The substantial question of law is answered in favour of the assessee and against the revenue. The appeal is allowed. The impugned orders are set aside. The assessee is held to be entitled to deduction of such profits and gains derived from the export of the computer software. No costs . The relevant portion of the judgment of the Hon ble Supreme Court in the case of HCL Technologies Ltd. (supra), is quot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance, 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 . 4. Regarding substantial questions of Law Nos. 2 to 4 :- Learned counsel for the Appellants-Revenue Mr.K.V.Aravind submits that he does not press the substantial questions of law Nos. 2 to 4. Learned counsel further submits that inadvertently name of the comparable case was wrongly mentioned. Hence, he has filed a memo to consider the case of M/s RITES Limited. His submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered opinion, give rise to any substantial question of law. 56. We are therefore of the considered opinion that the present appeals filed by the Revenue do not give rise to any substantial question of law and the suggested substantial questions of law do not meet the requirements of Section 260-A of the Act and thus the appeals filed by the Revenue are found to be devoid of merit and the same are liable to be dismissed. 57. We make it clear that the same yardsticks and parameters will have to be applied, even if such appeals are filed by the Assessees, because, there may be cases where the Tribunal giving its own reasons and findings has found certain comparables to be good comparables to arrive at an Arm s Length Price in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
