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TMI Blog2018 (7) TMI 1630X X X X Extracts X X X X X X X X Extracts X X X X ..... ort 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. - Decided in favour of assessee - I.T.A.Nos.411, 412, 415, 416 And 418 of 2010 - - - Dated:- 20-7-2018 - Mr. K. Vinod Chandran And Mr. Ashok Menon, JJ. For The Appellant : Sri.E.K.Nandakumar [Senior Advocate], Sri.P. Benny Thomas, Sri.P.Gopinath And Sri.K.John Mathai For The Respondent : By Senior Counsel For Government of India (Taxes) Sri.P.K.R.Menon And by Standing Counsel For Government of India (Taxes ) Sri.Jose Joseph JUDGMENT Vinod Chandran, J: Four appeals b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umerator being the export turnover and denominator being the total turnover. 5. The question of law raised in the Revenue's appeal is as follows: Whether the reimbursement of expenses obtained by the assessee for services rendered outside the country has to be excluded from the total turnover, since it stands excluded from the export turnover? 6. The assessee is a 100% EOU and a software exporter, who claimed benefit under the Software Technology Parks (STP) Scheme formulated by the Central Government under Section 3 of the FTDR Act. The notification at Annexure-A was under Section 3 of the FTDR Act, which granted complete exemption from the income tax payable for five years from the date of commencement. The Assessing Officer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law raised in the appeal of the Revenue, the issue is no longer res integra and is covered by the decision of the Hon'ble Supreme Court in CIT v. HCL Technologies Ltd. [(2018) 404 ITR 719 (SC)]. Suffice it to extract paragraph 19: 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 Income-tax 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 . The order of the Tribunal to that extent is unassai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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