DCIT, Circle-1(3), Hyderabad V. M/s. BACONTINUUM Solutions P. Ltd, Hyderabad

ITA 1065/HYD/2011

• Counselvise Citation: 106522514 RSA 2011
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 02-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: TA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1065/HYD/11 : A SSTT. YEAR 2005-06 DY. COMMISSIONER OF INCOME - TAX, CIRCLE 1(3), HYDERABAD V/S. M/S. B A C ONTINUUM SOLUTIONS LTD. , HYDERABAD ( PAN - AACCC 2310 C ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K .V. N.CHARYA RESPONDENT BY : SHRI TAPAN GUPTA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA R 2005-06 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE ORDER OF THE CIT(A) IS ERRONEOUS ON THE FAC T AND IN THE CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT(A) ERRED IN DIRECTING THE ASSESS ING OFFICER TO EXCLUDE COMMUNICATION CHARGES OF RS.3,91,55,265/- FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S. 10 A. 3. THE LEARNED. CIT(A) OUGHT TO HAVE NOTICED THAT O N THE ISSUE OF EXCLUSION OF COMMUNICATION CHARGES FROM TOTAL TURN OVER, THE CASE- LAWS ON WHICH HE RELIED UPON HAVE NOT BECOME FINAL AND THE M ATTER IS IN APPEAL BEFORE THE HIGH COURT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OU TSET, SUBMITTED THAT THE ISSUE OF EXCLUSION OF COMMUNICATION CHARGE S FROM THE TOTAL TURNOVER OF THE ASSESSEE FOR THE PURPOSE OF COMPUTATION OF D EDUCTION UNDER S.10A OF THE ACT IS COVERED IN FAVOUR OF THE ASSESSEE WITH S ERIES OF DECISIONS OF THE ITA NO.1065/HYD/11 M/S.BA CONTINUUM SOLUTIONS LTD, HYDERABAD 2 VARIOUS HIGH COURTS AND THE TRIBUNAL, A LIST OF WHI CH IS FILED BEFORE THE TRIBUNAL. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT THE ISSUE OF EXCLUSION OF COMMUNICATION CHARGES FROM TH E TOTAL TURNOVER OF THE ASSESSEE FOR THE PURPOSE OF COMPUTATION OF DEDUCTIO N UNDER S.10A OF THE ACT IS COVERED IN FAVOUR OF THE ASSESSEE WITH SERIE S OF DECISIONS OF THE HIGH COURTS AND THE TRIBUNAL, INCLUDING THE SPECIAL BENC H OF THE TRIBUNAL IN ITO V/S. SAK SOFT LTD. (313 ITR {AT}353); DECISIONS OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ITO V/S DE BLOCK INDIA SOFTWARE (P ) LTD. (ITA NOS.983 & 984/HYD/2006 DATED 31/1/2007); AND IN DY. CIT V/S. MENTOR GRAPHICS (I) PRIVATE LIMITED (ITA NO.696/HYD/2009), AND DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN DCIT V/S. BINARY SEMATICS LIMITED ( 109 TTJ 556). THE ISSUE BEING COVERED IN FAVOUR OF THE ASSESSEE AND THE CIT (A) HAVING FOLLOWED THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF DE BLOCK SOFTWARE (P) LTD. (SUPRA), AND DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE, WE HOLD THAT THERE IS NO MISTAKE IN THE ORDER OF TH E CIT(A) IN DECIDING THE ISSUE IN FAVOUR OF THE ASSESSEE, AND ACCORDINGLY, G ROUNDS OF APPEAL OF THE REVENUE ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 28.7.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 28TH JULY, 2011 ITA NO.1065/HYD/11 M/S.BA CONTINUUM SOLUTIONS LTD, HYDERABAD 3 COPY FORWARDED TO: 1. M/S. B A C ONTINUUM SOLUTIONS PRIVATE L IMITED, RAHEJA IT PARK, BUILDING NO.5, HYDERABAD 500 081 2. DY. COMMISSIONER OF INCOME-TAX, CIRCLE 1(3), HYD ERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) III , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX - I, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.