Deputy Commissioner of Income tax, Bangalore V. M/s Amazone Development Centre(India) P Ltd, Bangalore

ITA 1362/BANG/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9760 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 07-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE A BENCH, BANGALORE [CORAM: PRAMOD KUMAR AM AND SMT. P MADHAVI DEVI JM] I.T. (TP)A. NO. 1362/BANG/2014 ASSESSMENT YEAR 2009-10 THE DEPUTY COMMISSIONER OF INCOME-TAX ..APP ELLANT CIRCLE 11(1), BANGALORE [PAN:AAECA7705P) VS. M/S AMAZONE DEVELOPMENT CENTRE (INDIA) PVT LTD RESPONDENT 8 TH , 9 TH & 10 FLOOR, BRIGADE GATEWAY WORLD TRADE CENTRE, NO.26/1, DR. RAJKUMAR ROAD, MALLESWARAM (W) BANGALORE 560 055 ] APPEARANCES BY: SHRI T.S.N. MURTHY FOR THE ASSESSING OFFICER SHRI K.B. VASUDEVAN FOR THE ASSESSEE DATES OF CONCLUDING THE HEARING :APRIL 16, 2015. DATE OF PRONOUNCING THE ORDER :APRIL 16, 2015. ORDER PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 31 ST MAY, 2013 PASSED BY THE CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME-TAX A CT, 1961, FOR THE ASSESSMENT YEAR 2009-10. 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE A S FOLLOWS: 1. THE ORDER OF THE CIT (APPEALS) IS OPPOSED TO LAW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. IT(TP)A 1362/BANG/2014 ASSESS,EMT YEAR 2009-10 2 2. THE CIT(A) ERRED IN DIRECTING THE AO TO FOLLOW T HE RATIO LAID DOWN BY THE HONBLE HIGH COURT IN THE CASE OF TATA ELXSI LIMITED 349 ITR 98 WHILE COMPUTING THE DEDUCTION U/ S 10A BY EXCLUDING THE VALUE OF THE TELECOMMUNICATION EXPENDITURE FROM THE TOTAL TURNOVER ALSO, WITHOUT APPRECIATING THE FACT THAT THERE IS NO PROVISION IN SECTION 10A THAT SUCH EXPENSES SHOULD BE REDUCED FROM THE T OTAL TURNOVER ALSO, AS CLAUSE (IV) OF THE EXPLANATION TO SECTION 10A PROVIDES THAT SUCH EXPENSES ARE TO BE REDUCED O NLY FROM THE EXPORT TURNOVER. 3. THE CIT(A) ERRED IN NOT APPRECIATING THE FACT TH AT THE JURISDICTIONAL HIGH COURTS DECISION IN THE CASE OF TATA ELXSI LIMITED 349 ITR 98 HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND AN APPEAL HAS BEEN FILED BEFORE THE HONBLE SUPREME COURT. 4. FOR THESE D SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE CIT(A) BE REVERSED AND THAT OF THE ASSESSING OFFICE R BE RESTORED. 3. AS EVIDENT FROM THE ABOVE GROUNDS OF APPEAL, THE ISSUE IS ADMITTEDLY COVERED BY HONBLE JURISDICTIONAL HIGH COURTS JUDG MENT IN THE CASE OF CIT VS TATA ELEXI LTD (349 ITR 98), IN FAVOUR OF THE ASSES SEE BUT YET GRIEVANCE OF THE ASSESSING OFFICER IS THAT CIT(A) OUGHT NOT TO H AVE FOLLOWED THE SAID BIDING JUDICIAL PRECEDENT BECAUSE IT HAS BEEN IMPUG NED IN FURTHER APPEAL BEFORE HONBLE SUPREME COURT. 4. WE ARE UNABLE TO SEE ANY LEGALLY SUSTAINABLE MER ITS IN THIS GRIEVANCE. THE CIT(A) WAS QUITE JUSTIFIED IN FOLLOWING THIS BI NDING JUDICIAL PRECEDENT. THE VIEWS SO EXPRESSED BY HONBLE JURISDICTIONAL HI GH COURT BIND ALL LOWER TIERS OF THE JUDICIAL HIERARCHY, INCLUDING THIS TRI BUNAL AS INDEED THE CIT(A). THE MERE FACT THAT HONBLE HIGH COURTS DECISION HA S BEEN CHALLENGED IN FURTHER APPEAL DOES NOT, IN ANY WAY, DILUTE ITS BI NDING NATURE. RESPECTFULLY IT(TP)A 1362/BANG/2014 ASSESS,EMT YEAR 2009-10 3 FOLLOWING THE SAME, WE CONFIRM THE ORDER OF THE CIT (A) ON THIS ISSUE AND DECLINE TO INTERFERE IN THE MATTER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. IT WAS SO PRONOUNCED IMMEDIATELY UPON CONCLUSION OF HEARING. SD/- SD/- SMT. P MADHAVI DEVI PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) BANGALORE, THE 16 TH OF APRIL, 2015. COPIES TO: 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CIR.11(1), B ANGALORE 2. M/S AMAZONE DEVELOPMENT CENTRE (INDIA) PVT. LTD 3. CIT(A)-IV, BANGALORE 4. CIT, BANGALORE-I, BANGALORE 5. THE DRA BENCH 6. GUARD FILE (TRUE COPY) BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES, BANGALORE