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TMI Blog2018 (7) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... e. - I.T.A.No.469/2017 - - - Dated:- 28-6-2018 - Dr. Vineet Kothari And Mrs. S. Sujatha, J.J. Mr. K.V. Aravind, Adv.- For the Appellant Sri A. Shankar, Adv.- For the Respondent JUDGMENT The Appellants-Revenue have filed this appeal u/s.260A of the Income Tax Act, 1961, raising purportedly certain substantial questions of law arising from the order of the ITAT, A Bench, Bengaluru, dated 13.01.2017 passed in IT(TP)A No.1397/Bang/2016 (M/s.e4e Business Solutions India P. Ltd. vs. Deputy Commissioner of Income Tax) for A.Y.2011-12. 2. The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- (1) Whether, the Tribunal was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 paragraph 6.12 of the Policy. They will also be eligible for the add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 quoted below for ready reference:- 17. The similar nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit 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 1st substantial question of law: The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and the Respondent-assessee, has given the following findings against Revenue with regard to various issues raised before it with regard to Transfer Pricing and Transfer Pricing Adjustments made by the concerned authorities below. We consider it appropriate to quote from the order of Tribunal re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D. High Turnover of ₹ 1,184.55 crores. We have considered the rival submissions and gone through relevant material. Although, the assessee objected this case before the TPO, the TPO inter alia , rejected it stating that iGate Global Solutions Ltd considers all services under ITES. In the facts and circumstances, this issue is set aside to the TPO who would re-adjudicate it after affording due opportunity to the assessee. The corresponding appeal ground is treated as allowed for statistical purposes. 5. This Court in ITA No.536/2015 C/w ITA No.537/2015 delivered on 25.06.2018 (Prl. Commissioner of Income Tax Anr. Vs. M/s. Softbrands India Pvt. Ltd.,) has held that in these type of cases, unless an ex-facie perversity in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 the case of the assessees with which the assessees may not be satisfied and have filed such appeals before this Court. Therefore we clarify that mere dissatisfaction with the findings of facts arrived at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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