The interpretation of 'total turnover' under Section 10A should align with the exclusion of certain expenses from export turnover, and the same meaning given to export turnover should be adopted for total turnover, as the total turnover includes export turnover.

1. In all these appeals, as the question involved is one and the same, which is purely a question of law, they are taken up together and disposed of by this common judgment.

2. For the purpose of clarity, the facts in I.T.A. No. 450/2008 are adopted in order to appreciate the question of law raised in all these appeals.

3. The assessee Company is engaged in the business of specialized after sales services, marketing and distribution of customized high technology computer systems and storage devices, computer consultancy and solutions and software promotion. During the year ended 31st March, 2003, the main source of revenue for the assessee has been from trading division, and STP unit engaged in Call Centre operations. The assessee incurred a sum of Rs.10,44,31,606 in foreign exchange towards communication expenses. The assessee claimed exemption under Section 10A of the Income Tax Act, 1961 (hereinafter referred to as "the Act" for short) for the profits and gains derived from STP unit. In support of such claim, it has filed Form 56F and Annexure A thereto. In this Annexure, the details of profits derived by the undertaking, export turnover and total turnover of the undertaking are given. They are as under:

Total profits of the undertaking Rs.22,72,48,503/

Export's proceeds of the undertaking Rs.154,58,88,049/-

Total turnover of the undertaking Rs.154,58,88,049/-

4. In arriving at the total turnover, the assessee did not include Rs.10,44,31,606/ - incurred by it towards communication expenses. In this context, the assessee was asked to substantiate the non-inclusion of Rs.10,44,31,606/-, being expenditure incurred in foreign currency for the purpose of computation of exemption of income claimed under Section 10-A of the Act. The assessee justified its action. On consideration of the reply, the assessing authority held. Section 10-A defines only export turnover. The fact that only export turnover is defined and total turnover is not defined clearly manifests the legislature's intention to give the natural meaning to the term 'total turnover'. Therefore, it held, no deduction from total turnover is possible. Then, the assessing authority relied on various judgments and held that the communication expenses of Rs.10,44,31,606/- is to be excluded from the export turnover only. Consequently, the excess claim of Rs.1,38,16,958/- under Section 10-A was disallowed. Aggrieved by the said order of the assessing authority, the assessee preferred an appeal to the Commissioner of Income Tax (Appeals), Bangalore. He held that where the definition of a word has not been given, it must be construed in its popular sense if it is the word of everyday use. 'Popular sense' means, that sense which people conversant with the subject matter with which the statute is dealing with attribute to it. Therefore, as the word 'total turnover' was not defined under the said chapter, the interpretation placed by the assessing authority was found to be proper and therefore, the appellate authority confirmed the order passed by the assessing authority and dismissed the appeal. Aggrieved by the said order passed by the Appellate Commissioner, the assessee preferred an appeal to the Tribunal. The Tribunal relied on the judgment of the Supreme Court in the case of Commissioner of Income Tax, Coimbatore Vs. Lakshmi Machine Works, AIR 2007 SC 2385 , and held that the expenditure incurred by the assessee should not form part of total turnover and directed the Assessing Officer to re-compute the relief under Section 10-A of the Act excluding the said communication charges from export turnover as well as from total turnover. Aggrieved by the said order of the Tribunal, the revenue is in appeal.

5. The learned counsel for the Revenue, assailing the impugned order of the Tribunal, contended that the legislature took pains to define the word 'export turnover' in Section 10-A and consciously did not define 'total turnover', whereas in the case of Section 80HHC, the legisla