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2024 (11) TMI 648

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..... the legislature and an ordinary meaning is to be attributed to it, the said ordinary meaning is to be in conformity with the context in which it is used. Hence, what is excluded from export turnover must also be excluded from total turnover , since one of the components of total turnover is export turnover. Any other interpretation would run counter to the legislative intent and would be impermissible. - Honourable Dr. Justice Anita Sumanth And Honourable Mr. Justice G. Arul Murugan For the Appellant : Mr. A.S. Sriraman For the Respondents : Mrs. V. Pushpa Senior Standing Counsel COMMON JUDGMENT DR. ANITA SUMANTH., J. We have heard Mr.A.S.Sriraman, learned counsel for the appellant and Ms.V.Pushpa, learned Senior Standing Counsel for the .....

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..... hould be excluded from total turnover also. 6. The above submission found favour with the first appellate authority, who accepted the same. At the instance of the revenue, the matter was carried to the Income Tax Appellate Tribunal, which reversed the order of the first appellate authority, assailing which, the present appeals have been filed. 7. Both learned counsel would concur on the position that the issue in question is covered by a judgment of the Supreme Court in Commissioner of Income Tax Central-III V. HCL Technologies Ltd. (404 ITR 719), the operative portion of which reads as follows: 17) The similar nature of controversy, akin this case, arose before the Karnataka High Court in CIT vs. Tata Elxsi Ltd. (2012) 204 Taxman 321/17. T .....

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..... ondent which could have never been the intention of the legislature. 20) Even in common parlance, 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. 21) On the issue of expenses on technical services provided outside, we have to follow the same principle of interpretation as followed in the case of expenses of freight, telecommunication etc., otherwise the formula of calculation would be futile. Hence, in the same way, expenses incurred in fo .....

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