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TMI Blog2021 (2) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- The issue involved in the present appeals is covered by the decision of the Hon'ble Supreme Court of India in M/S MPHASIS LTD. (FORMERLY KNOWN AS MPHASIS BFL LTD.[ 2019 (11) TMI 1383 - SUPREME COURT ] wherein in agreement that M/S MPHASIS LTD. (FORMERLY KNOWN AS MPHASIS BFL LTD.) [ 2019 (2) TMI 122 - SC ORDER] preferred by the Revenue in respect of connected which was disposed of by the very same common Order [ 2014 (8) TMI 690 - KARNATAKA HIGH COURT] having taken note similar grounds raised in the special leave petition wherein the decision in Commissioner of Income-Tax And Another Vs. Tata Elxsi Ltd.[ 2011 (8) TMI 782 - KARNATAKA HIGH COURT ] relied that if the export turnover in the numerator is to be arrived at after ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls COMMON JUDGMENT M. DURAISWAMY, J. The above appeals arise against the orders passed by the Income Tax Appellate Tribunal, Chennai Bench D in respect of the Assessment Years 2002-2003, 2004-2005 and 2005-2006. Challenging the order passed by the Tribunal, the Revenue has filed the above appeals. 2.The assessee company is engaged in the business of maintenance and development of software and claims deduction under Section 10A of the Income Tax Act, 1961 ( the Act for brevity) and excluded telecommunication charges from total turnover as well as the expenses incurred in foreign currency while computing deduction under Section 10A. For the Assessment Year 2005-2006, software expenses have also been claimed as revenue exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals. Aggrieved over the same, the Revenue has filed the above appeals. 5.The above appeals were admitted on the following substantial question of law : Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that for the purpose of applying the formula under sub-section (4) of section 10A, the freight, telecom charges, or insurance attributable to delivery of articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India ought to be excluded both from the export turnover and from total turnover even though the statue has provided for such exclusion only from the export turnover? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial leave petition shall stand dismissed. Pending applications, if any, shall also stand disposed of. 7.The issue involved in the present appeals was also decided by the Karnataka High Court in the judgment reported in 2016 (74) taxmann.com 274 (Karnataka) [Commissioner of Income-Tax, Bangalore v. Mphasis Ltd.] , wherein, the Karnataka High Court has held as follows : 4. Insofar as the second substantial question of law is concerned, the same was considered by this Court in the case of CIT v. Tata Elxsi Ltd. [2012] 17 taxmann.com 100/204 Taxman 321/349 ITR 98 (Kar). It has been held as under: 17. From the aforesaid judgments, what emerges is that, there should be uniformity in the ingredients of both the numerator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omponent of total turnover in the denominator. The reason being the total turnover includes export turnover. The components of the export turnover in the numerator and the denominator cannot be different. Therefore, though there is no definition of the term 'total turnover' in Section 10-A, there is nothing in the said Section to mandate that, what is excluded from the numerator that is export turnover would nevertheless form part of the denominator. Though when a particular word is not defined by the legislature and an ordinary 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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