Karnataka High Court
The Commissioner Of Income Tax vs M/S Mphasis Software And Services ... on 24 October, 2011
Bench: N.Kumar, Ravi Malimath
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IN THE H168 CQURT <32? §<;:RNAT;::;§<;é; AT «5§:~,:~:s:;;$§T:,:_'G.;r_:€Ej"--7«' QifxTE§ 'MES THE 24'?" my :>éA§3C§*:::éER"2_£é':'~:V «. " A J PRESEQZ '_ " , THE HGWBLE ?¥i§A.p§§jSf'}QE N,';<::_;§v;gRv. THE HGWBLE MR%..3.usT:g.E.'é:;:v:mAL:r<*c'ATAH ITA* :\1«:>v,V1;vr_f,*»'z2».,VC?E":f§:>a.§ ' V 1 _ 1, THE CQI?~{¥MIS5S§i}.;.:___ER ©"'Fv::;E?~iC{:>:§§{i EV.%E'A>< C,R.B:i3£LT:3'IT;\s:;;5 4' QUEENS -R'GAS,;.':*-.
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2. THE DEPV{;T}¥* :;':0§v3.:»ré:':;$::§:~4ER 0? jm~Cg:>:»1E "r-A><'--8¢;2);.
Ems £xvS;ES~ES7T;§.'?&T CGMMISSIGNER 3% :'r%:§§.;rse:"E 7';'-A>=;}, C£P%CLE~1--§i'{if;
8A4§?»§Gz5%_2Ii§.fiD.1R§§E. ,..pz.P§ELLAsa:Ts gr; §é;.v:g};amv:§asD; AD\£§£fi:TE} .._""%%:;§J;§»{:§é~%;ég$:$ S@%"~"§'2z%*';%E1%:E 3:. SERVICES (ENDIA) ::>,:_;m., SAGAMANE TECHNQLGGY PARK;
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B;'3zfi§GAL%RE. .€.REsP3N:;.E_%s;f1f: K (3? ?'='3,/S.K§N§ 8: PATRIDGE, AB'*».iGC§2TES) ¥§<3$i?'§ This rm flied under semen 2é'e--«A._e% :.9e5.~A:w:;. arising cut sf ereier dateti "---.';G§Q?;v2OG§ * pass;~a-xdm am IT;'~\.No.367/BNG;2C!09, for the A'3§éssment._y'ea,r:: 2804-OS; graying is fsrmutate the sui3s:_a"r::_%a'§._V cguestmns €33?' {aw stated therein! atiow 'ch.é'appe.a'£ aimj s%:i:._ aside""t%':'é order passed by the ETAT, Baizg.al_(;r'e iajn' 1I':"'A',vv¥'\iG+.36?/BN6/2009 Gatefi 10.G?,2Q{}9f and <;:«;mfi.rm 't3'17e:'oz_f.(éé-:?_\Qf the Appeliate Csmmismoner conf§.rming.A~t%1ve:ard'e«r*<_pa$'::.efi-by the Deputy Commisgéoner Q? }'r:_g:'§:sme$;Ta>{<-u8«i(2-}V, "F4'_;mf:ba=:. This :T.s;':§_s'ni':~:"g'?V'..Q§§ this flay'; N.KL,IMAR 3,, delivered the ?Q§i"e2,a%;i;§1§: ~_ ..
Thés é§:§éa.§ Eé fi2Ee:}: Revenue against the orées' .-v.,§ass§:§:«:. theV"'§":i;is;;_;:'a;.%§ The quéstéerz that arises far 1_{;.§2:f;§§»-jx§:'a§:é».:.i*::":«._§f2 ibis agpeai is ':fi.?§"i€E§'"%€¥' we Triézgnaé was €e':'-sié:~i:' §§9*i §7é'_'§:%::*'§T%°§§ iiiai: when Camputing 'mg reiief L§F%€i€f ' Se€t%$é'2..i";ii%'V~.5;Bf the is'::§me Tax Aat, 19%: {Rs ammmt s:3f V' '..:52f%a7rw;._:;:s:ca%%::n exgsmses/freight, ingurania, .ff.=ie%'::::<:%r:m;:aézaiisn gxgsenges gm exgerzses §fEi'§jé§f'§'€£§ 5:":
fareéga Cij¥'F€i'}{:'g.? shmgié be excizsdefi {rem the :'o"é:a§ tzgrmarer far t§'§% same are reduces {yam exgari {2,:;é;:__e4sgé.;%'.L- ; V.
2. Yhis Q£2€SE§§§"§ haé gamehipggg' befara tiwés Caurt in ihe case 9%'-__ ENCGME TAX vs. Tam ELXSE §n :x;va.:a}}'2;:>'?3,§gha'§:a"V sthef ezennecteij cages difspssed_:§ff :§;2_»38%5"Aéi§v;sst;: 2813..
After referring E9 var%§'§_§A" retgegying 1:0 '%f8f"§fli.¥S e><perases.~i.tV zsaiag-~~%*:véit.:§~ i: §$gi*:__£%}'%:_££V§:-'isfimputirzg the censideratiozj turnover! the sxpensesv __ In taecommurzicatiorz chargses:;:__:3r__ is the detivery sf the articies £2? 'E31'i§3§S "<,7sr"::fe's:1*:"§::LV§y:"eV.:' geftware Qutside India, er _ exgegafiés if a::3z"'§..rj$_$;:'r:"1*3:E in fereign exchange in pmzsifiing §;2_:*xs§ce azztgiée inciia shauié mi be incézsdeé.
"f%:;_%"-Tféggfi§':i%'§,%::~x.T'Vf::~a's3efi by 132% "'i"r£§2:s':ai $3 in §:Gi"%$§f'33§'3{:€ V V' _ wiiiii-ézg §.1sé:2§-vé§'&:%ar§d by this Cfiiift. "§'%':erafs§e,. 2% 33 mi figs ,3;"z§: §§*2aé::'§: if; ifiég agzgeai.
The ssbsiarstiai Question Q? iaw is azzswefed is faves:
5? the assessee and agaézsst tfie Réveizzza. in ma Eight 3? 'the aforésaié View ' umecegsasy ta gs mm the Questisa' '€§f"€;:32f;'z';3e*t;e§%c§,%._:3§f' fie Csmmissimeg ta have invekeé hisifeix-§_$A%Gnai";§£;:*§.sditi§:{3:zV»"'~ Lmder Sectien 263 :3? the Inco'm'{e7~..}'ax.V.A::'asé j'%_iVV'E=:--fl3uf':e§y academia ;3\cger'<:Iir:g§3/,V?;:%':g sa§&sj"'é;z.zé:~:t%'€::§ is n§t"a:":s§%¢ered§ The aggaeai is disnfii§.g=§§;'V A V _ A V 3% ] Jfiagg RS gigffj