M/s. First Indian Corporation Private Limited, Bangalore V. DCIT, Bangalore

ITA 1138/BANG/2010

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9349 (ITAT-BANGALORE)
• Duration Of Justice: 5 year(s) 11 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 06-10-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 08-10-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: MANOJ M SHENOY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.1138 (BANG) 2010 (ASSESSMENT YEAR : 2006 07) M/S FIRST INDIAN CORPORATION PRIVATE LIMITED, NOW KNOWN AS COGNIZANT GLOBAL SERVICES PRIVATE LIMI TED, 5 TH FLOOR, BLOCK A, LAKEVIEW, BAGMANE TECHNOLOGY PARK, C. V. RAMAN NAGAR, BANGALORE - 560093 PAN: AAACD7206L APPELLANT VS THE DCIT, CIRCLE 11 (3), BANGALORE RESPONDENT ASSESSEE BY : SHRI MANOJ M. SHENOY, C. A. REVENUE BY : MISS NEERA MALHOTRA, CIT DATE OF HEARING : 06-10-2016 DATE OF PRONOUNCEMENT : 07-10-201 6 O R D E R PER SHRI A.K.GARODIA, AM THIS APPEAL IS FILED BY THE ASSESSEE AND THIS IS D IRECTED AGAINST THE ASSESSMENT ORDER PASSED BY THE A.O. ON 27.07.2010 U /S 143 (3) R.W.S. 144C OF THE I. T. ACT FOR A. Y. 2006 - 07. 2. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT AS PER LETTER DATED 26.06.2015 SUBMITTED BEFORE THE TRIBUNAL ON 01.07.2015, THIS I S REQUESTED BY THE ASSESSEE THAT THE ASSESSEE COMPANY WISHES TO WITHDRAW ALL TH E GROUNDS RELATING TO TP MATTERS I.E. GROUND NO. 2 TO 5 IN VIEW OF MAP RESOL UTION ACCEPTED BY THE ASSESSEE. REGARDING REMAINING GROUNDS WHICH ARE IN RELATION T O CORPORATE TAX MATTER, HE SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF T HE ASSESSEE BY THE JUDGMENT OF ITA NO. 1138 (B) 2010 2 HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F TATA ELXSI LTD. AS REPORTED IN 349 ITR 98. 3. IN REPLY, LEARNED DR OF THE REVENUE SUPPORTED TH E ORDERS OF THE LOWER AUTHORITIES. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND GRO UNDS NOS. 2 TO 5 ARE REJECTED AS NOT PRESSED. REGARDING GROUNDS 6 TO 12, WE DECIDE THE CORPORATE TAX ISSUE I.E. COMPUTATION OF DEDUCTION U/S 10A IN FAVO UR OF THE ASSESSEE BY RESPECTFULLY FOLLOWING THE JUDGMENT OF HONBLE KARN ATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD. (SUPRA) AND DIRECT THE A.O. THAT THE TOTAL TURNOVER SHOULD ALSO BE REDUCED BY RS. 42,55,295/- BEING THE AMOUNT REDUCED BY THE A.O. FROM EXPORT TURNOVER BECAUSE THIS AMOUNT WAS INCURR ED IN FOREIGN CURRENCY ON ACCOUNT OF SOFT LINK CHARGES BECAUSE THIS WAS HELD THAT TOTAL TURNOVER IS SUM TOTAL OF EXPORT TURNOVER AND DOMESTIC TURNOVER AND THEREF ORE, IF AN AMOUNT IS REDUCED FROM EXPORT TURNOVER, THE TOTAL TURNOVER ALSO GETS REDUCED BY THE SAME AMOUNT. THESE GROUNDS ARE ALLOWED. GROUND NO. 1 IS GENERAL AND GROUND 13 IS CONSEQUENTIAL. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (VIJAY PAL RAO) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE: D A T E D :07.10.2016 DS* ITA NO. 1138 (B) 2010 3 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER AR, ITAT, BANGALORE