ITO, Bangalore V. M/s Enteg Technologies Private Limited, Bangalore

ITA 1384/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0206 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 19-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DR P K SRIHARI

Judgement Text

ITA NOS.1384 TO 1386/B/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A, BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYRAGHAVAN, JUDICIAL MEMBER ITA NO. 1384 TO 1386/B/2015 ASSESSMENT YEAR 2009 10 TO 2011 12 M/S ENTEG TECHNOLOGIES PRIVATE LIMITED, SY. NO. 7P & 93P, 2 ND FLOOR, ELECTRONIC CITY, PHASE II, INDUSTRIAL AREA, BEGUR HOBLI, BANGALORE 560100. PAN AABCE6900F VS THE ITO, WARD 2 (1) (4), BANGALORE (RESPONDENT) (APPELLANT) SHRI G. N. BHAT, C.A. ASSESSEE BY DR. P. K. SRIHARI, ADDL. CIT REVENUE BY 20/07/2016 DATE OF HEARING 20 /07/2016 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, AM. ALL THESE THREE APPEALS ARE FILED BY THE REVENUE AN D SINCE, ONLY A COMMON ISSUE IS INVOLVED IN THESE APPEALS, ALL THESE APPEA LS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY ISSUE INVOLVED IN THESE APPEALS IS REGA RDING COMPUTATION OF DEDUCTION ALLOWABLE TO THE ASSESSEE U/S 10A AND IN PARTICULAR WHETHER EXPENDITURE INCURRED IN FOREIGN CURRENCY IS TO BE REDUCED FROM EXPORT TURNOVER ONLY AS HAS BEEN DONE BY THE A.O. OR FROM TOTAL TURNOVER ALSO A S HELD BY CIT (A) BY FOLLOWING THE JUDGMENT OF HONBLE KARNATAKA HIGH CO URT RENDERED IN THE CASE OF TATA ELXSI LIMITED VS. ACIT, 349 ITR 98. ITA NOS.1384 TO 1386/B/2015 2 3. LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSME NT ORDER WHEREAS LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF CIT (A). HE ALSO SUBMITTED THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY T HE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA E LXSI LIMITED VS. ACIT, 349 ITR 98. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE RA TIO OF THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F TATA ELXSI LIMITED VS. ACIT (SUPRA) IS THIS THAT THE TOTAL TURNOVER IS SUM TOTAL OF EXPORT TURNOVER AND DOMESTIC TURNOVER AND THEREFORE, IF ANY AMOUNT IS R EDUCED FROM EXPORT TURNOVER, THE TOTAL TURNOVER WILL CONSEQUENTLY GO DOWN BY THE SAME AMOUNT. HENCE, RESPECTFULLY FOLLOWING THIS JUDGMENT, WE DECLINE TO INTERFERE IN ORDER OF CIT (A) ON THIS ISSUE IN ALL THREE ASSESSMENT YEARS. 5. IN THE RESULT, ALL THESE THREE APPEALS OF THE RE VENUE ARE DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) (ASHA VIJAYRAGHAVAN) (A.K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /07/2016 COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., BANGALORE ASSTT. REGISTRAR