DCIT, Bangalore V. M/s. Starmark Services Pvt. Ltd, Bangalore

ITA 128/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63827 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 11-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DEVARAJ
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.128/B ANG/2011 (ASST. YEAR - 2007-08) THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-12(3), BANGALORE. . APPELLANT VS. M/S STARMARK SERVICES PVT. LTD., III FLOOR, WINGS, NO.16/1, CAMBRIDGE ROAD, HALASURU, BANGALORE-560 008. . RESPONDENT PAN NO.AAAC1727OH. APPELLANT BY : SHRI SATHYA SAI RATH RESPONDENT BY : SHRI DEVARAJ DATE OF HEARING : 27-12-2011 DATE OF PRONOUNCEMENT : 27-12-2011 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) III ITA NO.128/B/11 2 AT BANGALORE DATED 01.10.2010. THE APPEAL ARISES O UT OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME-TAX A CT, 1961. 2. IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN DIRECTING THE AO TO EXCLUDE THE TELECOMMU NICATION EXPENSES OF RS.14,06,337/- AND TRAVEL EXPENSES INCU RRED IN FOREIGN CURRENCY AMOUNTING TO RS.32,35,079/- ATTRIBUTABLE T O DELIVERY OF SOFTWARE FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 10A OF THE IT ACT, 1961. 3. AFTER HEARING BOTH THE PARTIES AND AFTER CONSIDE RING THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THA T THIS ISSUE IS COVERED IN FAVOR OF THE ASSESSEE NOT ONLY BY THE DE CISION OF HONBLE CHENNAI SPECIAL BENCH IN THE CASE OF SAK SOFT LTD., 313 ITR 353 (AT) AND BY THE DECISION OF HONBLE BOMBAY HIGH CO URT IN THE CASE OF M/S GEM PLUS JEWELLERY INDIA LTD, 2010-TIOL-456- HC-MUM-IT) AND ALSO THE BY DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. & OTHERS (2011-TIOL-684-HC- KAR-II, WHEREIN IT HAS BEEN HELD THAT FOR THE PURPOSE OF CO MPUTATION OF DEDUCTION U/S 10A OF THE INCOME-TAX ACT, IF ANY EXP ENDITURE IS ITA NO.128/B/11 3 EXCLUDED FROM THE EXPORT TURNOVER, THE SAME HAS TO BE EXCLUDED FROM THE TOTAL TURNOVER ALSO. 4. IN VIEW OF THE SAME, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A) WHICH IS IN CONSONANCE WITH THE JUDICIAL PRECEDENTS ON THE ISSUE. ACCORDINGLY REVENUES APPE AL IS DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH DEC, 2011. SD/- SD/- (N.K SAINI) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER VMS. BANGALORE DATED : 27/12/2011 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR, I TAT, BANGALORE.