JCIT, Bangalore V. M/s Cibersites India Pvt. Ltd., Bangalore

ITA 1241/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5459 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 21-06-2016
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.1241, 1242 & 1243 (BANG) 2016 (ASSESSMENT YEARS : 2006 07 TO 2008 09) THE JCIT(OSD), CIRCLE 2 (1) (1), BANGALORE APPELLANT VS M/S CIBERSITES INDIA PVT. LTD. 5 TH FLOOR, TOWER D, IBC KNOWLEDGE PARK, 4/1, BANNERGHATA ROAD, BANGALORE -560 054 PAN: AABCK2997E RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI JEEVAN J. NEETALGI, STANDING CO UNSEL DATE OF HEARING : 02-05-2017 DATE OF PRONOUNCEMENT : 05-05-2017 O R D E R PER SHRI A.K.GARODIA, AM ALL THESE THREE APPEALS FILED BY THE REVENUE AND T HESE ARE DIRECTED AGAINST A COMBINED ORDER OF THE LD. CIT(A) 2, BAN GALORE DATED 08-03-2016. 2. IN ALL THESE THREE YEARS, THE REVENUE HAS RAISED SEVERAL GROUNDS BUT THE GRIEVANCES ARE ONLY TWO IN EACH YEAR AND THESE ARE SAME IN EACH YEAR. THEREFORE, THESE APPEALS WERE HEARD TOGETHER AND AR E BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. THE FIRST GRIEVANCE IS ABOUT THE DIRECTION OF CIT (A) TO THE AO TO REDUCE EXPEND ITURE INCURRED IN FOREIGN CURRENCY FROM TOTAL TURNOVER FOR COMPUTING THE DEDU CTION ALLOWABLE U/S 10A ITA NOS.1241 TO 1243(B)2016 2 BY FOLLOWING THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD. AS REPORTED IN 349 ITR 98. THE SECOND GRIEVANCE IS ABOUT THE DIRECTION OF CIT (A) TO THE AO TO COMPUTE AND ALLOW THE DEDUCTION ALLOWABLE U/S 10A BEFORE SET OFF OF B/F LOSSES/DEPR ECIATION BY FOLLOWING THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED I N THE CASE OF CIT VS. YOKOGAWA INDIA LTD. AS REPORTED IN 341 ITR 385. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE BUT SINC E IT WAS SEEN THAT BOTH ISSUES ARE COVERED BY TWO JUDGMENTS OF HONBLE KARNATAKA HIGH COURT AS NOTED ABOVE, THESE APPEALS WERE HEARD EX PARTE Q UA THE ASSESSEE. THE LD. DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDERS. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IT WAS HELD BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF TATA ELXSI LTD. (SUPRA) THAT THE TOTAL TURNOVER IS SUM TOTAL OF EXPORT TUR NOVER AND DOMESTIC TURNOVER AND THEREFORE, IF AN AMOUNT IS REDUCED FRO M THE EXPORT TURNOVER THEN THE TOTAL TURNOVER ALSO GOES DOWN BY THE SAME AMOUNT AUTOMATICALLY. IN THE PRESENT CASE, LD. CIT (A) HAS DIRECTED THE A O TO REDUCE EXPENDITURE INCURRED IN FOREIGN CURRENCY FROM TOTAL TURNOVER AL SO FOR COMPUTING THE DEDUCTION ALLOWABLE U/S 10A BECAUSE THE SAME WAS REDUCED BY HIM FROM THE EXPORT TURNOVER. IN VIEW OF THIS JUDGMENT OF T HE HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF M/S TATA ELXSI LTD. ( SUPRA), WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT (A) ON THIS I SSUE AND THEREFORE, WE DECLINE TO INTERFERE WITH THE SAME. GROUND NO. 2 I N ALL THESE THREE YEARS IS REJECTED. 6. REGARDING THE SECOND ISSUE ALSO, WE FIND THAT TH E ORDER OF CIT (A) ON ITA NOS.1241 TO 1243(B)2016 3 THIS ISSUE IS IN LINE WITH THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS. YOKOGAWA INDIA LTD. (SUPRA) AND AS PER THE GROUND NO. 3 IN EACH YEAR, THIS IS THE ONLY OBJECTI ON OF THE DEPARTMENT THAT THE DEPARTMENT HAS NOT ACCEPTED THIS JUDGMENT OF TH E HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS. YOKOGAWA INDIA LTD. (SUPRA) AND SLP IS FILED BEFORE HONBLE APEX COURT. HENCE, THIS IS NOT A CASE OF THE DEPARTMENT THAT THE DIRECTION OF CIT (A) TO THE AO ON THIS ISSUE IS NOT IN LINE WITH THIS JUDGMENT. HENCE, EVEN IF SLP IS FILED BY THE REVENUE BEFORE HONBLE APEX COURT, THEN ALSO, WE ARE DUTY BOUND TO FOLLOW THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS. YOKOGAWA INDIA LTD. (SUPRA) BECAUSE THIS IS NOT A CASE OF THE DEPARTMEN T THAT STAY IS GRANTED BY HONBLE APEX COURT ON THE OPERATION OF THIS JUDGMEN T. MOREOVER, AT PRESENT, THE SLP IS ALSO DISMISSED BY HONBLE APEX COURT AND THEREFORE, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT (A) ON THIS I SSUE ALSO AND HENCE, WE DECLINE TO INTERFERE WITH THE SAME. GROUND NO. 3 I N ALL THESE THREE YEARS IS ALSO REJECTED. GROUNDS 1 & 4 IN ALL THESE YEARS ARE GENERAL FOR WHICH, NO SEPARATE ADJUDICATION IS CALLED FOR. 7. IN THE RESULT, ALL THREE THE APPEALS OF THE REVE NUE ARE DISMISSED. 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 : 05.05.2017 AM * ITA NOS.1241 TO 1243(B)2016 4 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 1. DATE OF DICTATION 2. , , DATE ON WHICH TYPED DRAFT IS PLACED BEFORE THE DICT ATING MEMBER .. 3. !' # . $ %# / $ %# # & DATE ON WHICH THE APPROVED DRAFT COMES TO THE PS/SR .PS. 4. ''() & * + DATE ON WHICH THE ORDER IS PLACED BEFORE THE DICTAT ING MEMBER FOR PRONOUNCEMENT 5. * . %# / # . . %# # + DATE ON WHICH THE ORDER COMES BACK TO THE PS/SR.PS .. 6 * !', + DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. ! !', ' , - ) IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO . 8. .% / 0 + DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. * 1'2 / 34 & 5 + DATE ON WHICH ORDER GOES FOR XEROX &ENDORSEMENT 10. 0 6 / + DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 11. * 7 & 0 8 + THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. !) * 9() & 0 9() /#5 . + THE DATE ON WHICH THE FILE GOES TO DESPATCH SECTION FOR DESPATCH OF THE TRIBUNAL ORDER 13. * 9() + DATE OF DESPATCH OF ORDER .