Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961 – ss.10A 80HHC and 80HHE |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961 – ss.10A, 80HHC and 80HHE – Claimof certain expenses attributable to the delivery of software outsideIndia or in providing technical services from ‘total turnover’ by theRespondent u/s. 10A of the IT Act – Neither s.10A nor s.2 of the ITAct define the term ‘total turnover’ – However, the term ‘totalturnover’ is given in clause (ba) of the Explanation to s.80 HHC ofthe IT Act – Held: The definition of total turnover given u/ss. 80HHCand 80HHE cannot be adopted for the purpose of s.10A as thetechnical meaning of total turnover, which does not envisage thereduction of any expenses from the total amount, is to be taken intoconsideration for computing the deduction u/s.10A – When themeaning is clear, there is no necessity of importing the meaning oftotal turnover from the other provisions – What is excluded from‘export turnover’ must also be excluded from ‘total turnover’, sinceone of the components of ‘total turnover’ is export turnover – Evenin common parlance, when the object of the formula is to arrive atthe profit from export business, expenses excluded from exportturnover have to be excluded from total turnover also – Otherwise,any other interpretation makes the formula unworkable andabsurd – Hence, such deduction shall be allowed from the totalturnover in same proportion as well – In the same way, expensesincurred in foreign exchange for providing the technical servicesoutside shall be allowed to exclude from the total turnover.Interpretation of Statutes – Harmonious Construction – Held:The rule of harmonious construct ion is the thumb rule tointerpretation of any statute – An interpretation which makes theenactment a consistent whole, should be the aim of the Courts anda construction which avoids inconsistency or repugnancy betweenthe various sections or parts of the statue should be adopted. |
Judge | Hon'ble Mr. Justice R.K. Agrawal |
Neutral Citation | 2018 INSC 398 |
Petitioner | Commissioner Of Income Tax, Central-iii |
Respondent | Hcl Technologies Ltd. |
SCR | [2018] 7 S.C.R. 1079 |
Judgement Date | 2018-04-24 |
Case Number | 8489 |
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