V.N.S.Makrof Technologies Private Limited, Hyderabad V. DCIT, Hyderabad

CO 19/HYD/2010

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 5291 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 30-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: ANJANEYULU
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA. 370/HYD/2010 ASSESSMENT YEAR 2006-07 THE DCIT, CIRCLE 3(3), HYDERABAD VS M/S V.N.S. MAKRO TECHNOLOGIES LTD., HYDERABAD (PAN AABCV 4969 M) (APPELLANT) (RESPONDENT) CO.NO.19/HYD/2010 ARISING OUT OF ITA NO.370/H/2010 ASSESSMENT YEAR 2006-07 M/S V.N.S. MAKRO TECHNOLOGIES LTD., HYDERABAD (PAN AABCV 4969 M) VS THE DCIT, CIRCLE 3(3), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANJANEYULU RESPONDENT BY : SMT. NIVEDITA BISWAS, DR O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THE APPEAL PREFERRED BY THE REVENUE AND THE CRO SS OBJECTION PREFERRED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)IV, HYDERABAD DATED 29.12.2009 AND PERTAINS TO THE ASSESSMENT YEAR 2006-07. 2. THE REVENUE RAISED THE GROUND IN ITS APPEAL IS THAT WHETHER THE COMMUNICATION CHARGES REDUCED FROM THE EXPORT T URNOVER SHOULD ALSO BE REDUCED FROM THE TOTAL TURNOVER, EVEN THOUGH THE RE IS NO PROVISION IN SECTION 10A OF THE INCOME TAX ACT. ITA NO.370 & CO.19/H/2010 VNS MAKRO TECHNOLOGIES LTD . 2 2 3. THE CROSS OBJECTION FILED BY THE ASSESSEE IN CO.19/HYD/2010 IS IN SUPPORT OF THE ORDER OF THE CIT(A). 4. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINION THAT SIMILAR ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE CASE OF ITO VS. SAK SOFT LTD. (313 ITR 353 (AT) (CHENNAI) (SB) WHEREIN IT WAS HELD THAT THE TELECOMMUNICATION EXPENDITURE WHICH DO NOT HAVE ANY ELEMENT OF PROFIT HAVE TO BE EXCLUDED BOTH FROM THE TOTAL TURNOVER AN D FROM THE EXPORT TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 10B OF THE INCOME TAX ACT. 5. IN VIEW OF THE ABOVE JUDGEMENT, THE APPEAL OF THE REVENUE IN ITA NO.370/HYD/2010 IS DISMISSED AND THE CROSS OBJE CTION FILED BY THE ASSESSEE IN CO.19/HYD/2010 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 27.10.2010 SD/- SD/- N.R.S. GANESAN CHANDRA POOJARI JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 27 OCTOBER, 2010 COPY FORWARDED TO: 1. THE ACIT, CIRCLE 3(3), HYDERABAD 2. M/S V.N.S. MAKRO TECHNOLOGIES LTD., 1-65/2/256, MAKRO TOWERS SECOND KAVURI HILLS, MADHAPUR, HYDERABAD 3. CIT(A)-IV HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP