Deputy Commissioner of Income Tax, Bangalore V. M/s. Akamai Technologies India Pvt Ltd., Bangalore

ITA 1356/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7544 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 24-07-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 28-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP H HUILGOL SHRI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE S HRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER I.T . A. NO. 1356 /BANG/20 16 (ASSESSMENT YEAR : 20 08 - 09 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), B ANGALORE. . APPELLANT. VS. M/S. AKAMAI TECHNOLOGIES INDIA PVT. LTD., NO.77,SALARPURIA SOFTZONE, 2 ND & 3 RD FLOORS, A WING, NO.80/1, BELLANDUR VILLAGE, ORR, BANGALORE - 560 037 . .. RESPONDENT. C.O. NO.25/BANG/2017 (IN I.T. A. NO. 1356/BANG/2016) (ASSESSMENT YEAR : 20 08 - 09 ) (BY ASSESSEE) ASSESSEE BY : SHRI SANDEEP H HUILGOL, ADVOCATE. R E SPONDENT BY : SHRI S. NAMBIRAJAN, ADDL. CIT (D.R) DATE OF H EARING : 27.09.2017. D ATE OF P RONOUNCEMENT : 27.09 .201 7 . O R D E R PER SHRI VIJAY P AL RAO, J .M . : THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DT. 30.06.2016 OF COMMISSIONER OF INCOME TAX (APPEALS) - 14 , BANGALORE FOR THE ASSESSMENT YEAR 20 08 - 09. 2 IT A NO. 1356 /BANG/20 16 & C.O. NO.25/BANG/2017 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 3. TH US IT IS CLEAR THAT THE ONLY ISSUE RAISED BY THE REVENUE IS RE GARDING EXCLUSION OF TELECOMMUNICATION EXPENSES AND TRAVELLING EXPENSES INCURRED IN FOREIGN CURRENCY FROM EXPORT TURNOVER AS WELL AS TOTAL TURNOVER FOR COMPUTATION OF DEDUCTION UNDER SECTION 10A OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 4. THE ASSESSEE IN THE CROSS OBJECTION HAS SUPPORTED THE ORDER OF THE CIT (APPEALS). 3 IT A NO. 1356 /BANG/20 16 & C.O. NO.25/BANG/2017 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE ISSUE OF EXPENDITURE INCURRED TOWARDS TELECOMMUNICATION CHARGES AN D TRAVELLING EXPENSES IN FOREIGN CURRENCY IS REDUCED FROM EXPORT TURNOVER AN EQUAL AMOUNT SHOULD ALSO BE REDUCED FROM TOTAL TURNOVER WHILE COMPUTING THE DEDUCTION UNDER SECTION 10A OF THE ACT, IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. 349 ITR 98 (KAR) . THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT HAS BEEN FOLLOWED IN A NUMBER OF CASES IN CO - ORDINATE BENCHES OF ITAT. HENCE, THIS ISSUE IS DECIDED AGAINST THE REVENU E AND IN FAVOUR OF ASSESSEE. 5. IN THE RESULT, THE REVENUE S APPEAL AS WELL AS C.O. OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH SEPT., 2017. SD/ - ( INTURI R AMA RAO ) ACCOUNTANT MEMBER SD/ - ( VIJAY PAL RAO ) JUDICIAL MEMBER BANGALORE, DT. 27. 09.2017. *REDDY GP