CSS Corp Private Limited, CHENNAI V. ACIT, CHENNAI

CO 103/CHNY/2013

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 8893 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 25-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T N BETGIRI
• Assessee Lawyers: K B MURALIDHARAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A. NO. 945/MDS/2013 & C.O. NO. 103/MDS/2013 ( IN ITA NO. 945/MDS/2013 ) ASSESSMENT YEAR 2006-07 ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-I(3), CHENNAI-600 034. VS M/S. CSS CORP PVT. LTD., NO. 38 (OLD NO. 40), NORTH BOAG ROAD, T. NAGAR, CHENNAI-600 017. [PAN: AAECS 2087 A] (APPELLANT) (RESPONDENT/CROSS OBJECTOR) REVENUE BY : SHRI T.N. BETGIRI, JCIT ASSESSEE BY : SHRI K.B.MURALIDHARAN, C.A., DATE OF HEARING : 14-08-2013 DATE OF PRONOUNCEMENT : 28-08-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-IX, CHENNAI DATED I.T.A. NO. 945/MDS/2013 & C.O. NO. 103/MDS/2013 :- 2 -: 19-02-2013 RELEVANT TO THE ASSESSMENT YEAR (AY) 200 6-07. THE ONLY GROUND RAISED BY THE REVENUE IN THE APPEAL IS, THE DIRECTION GIVEN BY THE CIT(APPEALS) TO ASSESSING OFFICER TO R E-COMPUTE DEDUCTION U/S. 10A OF THE INCOME TAX ACT, 1961 (HER EIN AFTER REFERRED TO AS THE ACT) AFTER EXCLUDING TELECOMMU NICATION CHARGES INCURRED IN FOREIGN CURRENCY FROM THE TOTAL TURNOVER. THE ASSESSEE HAS FILED CROSS-OBJECTIONS IN SUPPORT OF T HE ORDER OF THE CIT(APPEALS). 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVI DING VOICED BASED TECHNICAL SUPPORT THROUGH WEB TO VARIO US CLIENTS ACROSS THE WORLD. THE SERVICES RENDERED BY THE ASS ESSEE ARE COVERED UNDER INFORMATION TECHNOLOGY ENABLED SERVIC ES. THE ASSESSEE IS ENTITLED TO CLAIM DEDUCTIONS U/S. 10A O F THE ACT. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE AY. 200 6-07 ON 29-11-2006 DECLARING ITS INCOME AS ` 19,27,200/-. THE ASSESSING OFFICER VIDE ASSESSMENT ORDER DATED 29-12-2008 MADE CERTAIN ADDITIONS/DIS-ALLOWANCES IN THE INCOME RETURNED BY THE ASSESSEE. APART FROM OTHER DIS-ALLOWANCES, THE ASSESSING OFFI CER RE- COMPUTED DEDUCTION U/S. 10A BY EXCLUDING TELECOMMUN ICATION I.T.A. NO. 945/MDS/2013 & C.O. NO. 103/MDS/2013 :- 3 -: CHARGES FROM EXPORT TURNOVER ONLY. THE ASSESSEE PR EFERRED AN APPEAL AGAINST THE ASSESSMENT ORDER. THE CIT(APPEA LS) VIDE IMPUGNED ORDER, ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED AGAINST THE ORDER OF THE CIT(APPEALS), R EVENUE HAS COME IN APPEAL BEFORE US. THE ONLY ISSUE RAISE D IN APPEAL BY THE REVENUE IS EXCLUSION OF TELECOMMUNICATION CHARG ES INCURRED BY ASSESSEE IN FOREIGN CURRENCY BOTH FROM THE EXPOR T TURNOVER AND TOTAL TURNOVER FOR COMPUTING OF DEDUCTION U/S. 10A. 3. SHRI K.B. MURALIDHARAN, APPEARING ON BEHALF OF T HE ASSESSEE SUBMITTED AT THE OUTSET THAT THE ISSUE HAS ALREADY BEEN DECIDED BY THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. M/S. SAKSOFT LTD REPORTED AS 121 TTJ CHENNAI (SB): 313 ITR (AT) 353. ON THE OTHER HAND, SHRI T.N. BETGIRI, JCIT APPEARI NG ON BEHALF OF THE REVENUE FAIRLY CONCEDED THAT THE ISSU E HAS BEEN DECIDED BY THE SPECIAL BENCH OF THE TRIBUNAL IN FAV OUR OF THE ASSESSEE. I.T.A. NO. 945/MDS/2013 & C.O. NO. 103/MDS/2013 :- 4 -: 4. AFTER HEARING BOTH THE SIDES AND PERUSING THE OR DERS OF THE AUTHORITIES BELOW, WE FIND THAT THE ISSUE IN APPEAL IS SQUARELY COVERED BY THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF M/S. SAKSOFT LTD (SUPRA). WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(APPEALS). THE APPEAL OF TH E REVENUE IS DISMISSED BEING DEVOID OF MERIT. 5. THE ASSESSEE HAS FILED CROSS-OBJECTIONS IN SUPPO RT OF THE ORDER OF THE CIT(APPEALS). SINCE THE APPEAL OF THE REVENUE HAS BEEN DISMISSED, THE CROSS OBJECTIONS HAVE BECOME I NFRUCTUOUS AND ARE DISMISSED ACCORDINGLY. ORDER PRONOUNCED ON WEDNESDAY, THE 28 TH AUGUST, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 28 TH AUGUST, 2013 TNMM COPY TO: ASSESSEE/AO/CIT(A)/CIT/DR