DCIT, Bangalore V. M/s Exilant Technologies Pvt. Ltd., Bangalore

ITA 1267/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0283 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 08-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Assessee Lawyers: PADAMCHAND KHINCHA

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH A, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1267(BANG) 2015 (ASSESSMENT YEAR : 2011-12) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(2), RASTHROTHANA BHAVAN, BANGALORE RE SPONDENT VS M/S EXILANT TECHNOLOGIES PVT. LTD., CONCORD @ MANTRI, NO.10, BANGALORE-560 025 PAN NO.AABCM2535Q RESPONDENT REVENUE BY : DR.P.K.SRIHARI, ADDL. CIT ASSESSEE BY : SHRI PADAMCHAND KHINCHA, CA DATE OF HEARING : 11-07-2016 DATE OF PRONOUNCEMENT : 1 5 -07-2016 O R D E R PER SHRI A.K.GARODIA, JM: THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R THE LD.CIT(A), BANFALORE-2, FOR THE ASSESSMENT YEAR : 2011-12. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER 1.THE ORDER OF THE LD. CIT(A) IS CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CASE AND HENCE NOT SUSTAINABLE. 2. THE CIT(A) HAS ERRED ON THE DECISION RELIED ON T HE JURISDICTIONAL HONBLE HIGH COURT IN THE CASE OF TA TA ELXSI LTD., VS ACIT (349 ITR 98) AND IN DIRECTING T HE AO ITA NO.1267(BANG)2015 2 TO ALLOW THE APPELLANTS CLAIM FOR REDUCING THE EXPENDITURE INCURRED IN FOREIGN CURRENCY NOT ONLY F ROM THE EXPORT TURNOVER BUT ALSO FROM THE TOTAL TURNOVE R IN DETERMINING THE EXEMPTION U/S 10A AVAILABLE AND TA X LIABILITY ON THE TOTAL INCOME SO DETERMINED UNDER T HE NORMAL PROVISIONS OF THE IT ACT WHILE THE TAX DETER MINED UNDER MAT PROVISIONS WOULD REMAIN UNCHANGED. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT(A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE AO MAY BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE AND OF THE GROUNDS MENTIONED ABOVE. 3. THE LD. DR OF THE REVENUE SUPPORTED THE ASSESSME NT ORDER, WHEREAS THE LD. AR OF THE ASSESSEE SUPPORTED THE OR DER OF THE LD. CIT(A). HE ALSO SUBMITTED THAT THE ISSUE INVOLVED IN THIS A PPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF THE HONB LE KARNATAKA HIGH COURT RENDERED IN THE CASE OF M/S TATA ELXSI LTD., AS REPORTED IN 349 ITR 98. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT THE ISSUE INVOLVED IN THE REVENUES APPEAL IS COVERED I N FAVOUR OF ASSESSEE BY THE JUDGMENT OF THE HONBLE KARNATAKA HIGH COURT RE NDERED IN THE CASE OF M/S TATA ELXSI LTD., (SUPRA) IN WHICH IT WAS HEL D THAT THE TOTAL TURNOVER IS NOTHING BUT SUM TOTAL OF EXPORT TURNOVE R AND DOMESTIC TURNOVER AND THERFORE, IF AN AMOUNT IS REDUCED FROM THE EXPORT TURNOVER ITA NO.1267(BANG)2015 3 IT WILL AUTOMATICALLY RESULT INTO REDUCTION OF TOTA L TURNOVER ALSO BY THE SAME AMOUNT. HENCE, WE DECLINE TO INTERFERE WITH T HE ORDER OF THE LD. CIT(A) ON THIS ISSUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/ - (ASHA VIJAYARAGHAVAN) SD/ - (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER BANGALORE: D A T E D : 15.07.2016 AM* 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 ITA NO.1267(BANG)2015 4 1. DATE OF DICTATION .. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P. S. .. 4 DATE ON WHICH THE ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .. 5. DATE ON WHICH THE ORDER COMES BACK TO THE SR. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO . 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER DOES FOR XEROX & ENDORSEMENT . 10. DATE ON WHICH THE FILE GOES TO THE HEA D CLERK. 11 THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER. 12 THE DATE ON WHICH THE FILE GOES TO THE DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER 13 DATE OF DISPATCH OF ORDER