ACIT, CHENNAI V. M/s. Professional Access Software Development Pvt. Ltd., CHENNAI

ITA 1388/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57794 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 03-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR STAND ING
• Assessee Lawyers: N DEVANATHAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.1388(MDS)/2011 ASSESSMENT YEAR : 2005-06 THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE V(2), CHENNAI. VS. M/S. PROFESSIONAL ACCESS SOFTWARE DEVELOPMENT PVT. LTD., 7H-CENTURY PLAZA, 560-562, ANNA SALAI, TEYNAMPET,CHENNAI-600018 PAN AACCP 6523C. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KEB RENGARAJAN, JR.S TANDING COUNSEL RESPONDENT BY : SHRI N.DEVANATHAN, ADVOCATE DATE OF HEARING : 11 TH JANUARY, 2012 DATE OF PRONOUNCEMENT : 11 TH JANUARY, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-V AT CHENNAI, - - ITA 1388 OF 2011 2 DATED 5-5-2011 AND ARISES OUT OF THE ASSESSMENT COM PLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE GROUND RAISED BY THE REVENUE IN THIS APPEAL IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ER RED IN HOLDING THAT THE EXPENDITURE INCURRED IN FOREIGN CU RRENCY TOWARDS COMMUNICATION EXPENSES HAS TO BE EXCLUDED FROM THE TOTAL TURNOVER ALSO, AS THE SAME HAS BEEN REDUCED FROM TH E EXPORT TURNOVER. THIS ISSUE HAS BEEN DECIDED BY THE SPECI AL BENCH OF THE INCOME-TAX APPELLATE TRIBUNAL (CHENNAI D BENC H) IN THE CASE OF SAK SOFT LTD., 121 TTJ 865, IN FAVOUR OF TH E ASSESSEE HOLDING THAT THE REDUCTION MUST BE MADE BOTH FROM E XPORT AND TOTAL TURNOVER. IN VIEW OF THE ABOVE, THE COMMISSI ONER OF INCOME-TAX(APPEALS) HAS RIGHTLY FOLLOWED THE ORDER OF THE SPECIAL BENCH OF THE TRIBUNAL AND ALLOWED THE APPEAL OF THE ASSESSEE ON THIS POINT. 3. IN RESULT THIS APPEAL FILED BY THE REVENUE IS DISMISSED. - - ITA 1388 OF 2011 3 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 11 TH JANUARY, 2012 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 11 TH JANUARY, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.