DCIT, Bangalore V. M/s Cedegim Software India Pvt. Ltd., Bangalore

ITA 1393/BANG/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9336 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-09-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 20-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEERA SRIVASTAVA ADDITIONAL
• Assessee Lawyers: VIDYA KURUP

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1393/BANG/2015 ASSESSMENT YEAR : 2008-09 THE DCIT, CIRCLE 2 (1) (1), BANGALORE. VS. M/S. CEDEGIM SOFTWARE INDIA PVT. LTD., NO. 11/1, 12/1, MARUTHI INFOTECH CENTRE, KORAMANGALA, INNER RING ROAD, BANGALORE 560071. PAN: AABCD9297J APPELLANT RESPONDENT ASSESSEE BY : MS. VIDYA KURUP, ADVOCATE REVENUE BY : SMT. MEERA SRIVASTAVA, ADDITIONAL CIT DATE OF HEARING : 26.09.2016 DATE OF PRONOUNCEMENT : 13.10.2016 O R D E R PER A.K. GARODIA, ACCOUNTANT MEMBER THIS IS A REVENUES APPEAL DIRECTED AGAINST THE O RDER OF LEARNED CIT (APPEALS), BANGALORE 2 DATED 27.8.2015 FOR ASSESS MENT YEAR 2008-09. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- 1. THE ORDER OF THE LD. CIT (A) IS CONTRARY TO THE FACTS AND CIRCUMSTANCES OF THE CASE AND HENCE NOT SUSTAINABLE. 2. THE CIT (A) HAS ERRED IN DIRECTED THE AO TO EXCL UDE THE EXPENDITURE INCURRED IN FOREIGN CURRENCY FROM BOTH EXPORT TURNO VER AS WELL AS FROM TOTAL TURNOVER BY PLACING ITS RELIANCE ON THE CASE OF TATA ELXSI LTD., VS. ACIT ((349 ITR 98)) WITHOUT APPRECIATING THAT THERE IS NO PROVISION IN SECTION 10A THAT SUCH EXPENSES SHOULD BE REDUCED FR OM THE TOTAL TURNOVER, AS CLAUSE (IV) OF THE EXPLANATION TO SECT ION 10A PROVIDES THAT SUCH EXPENSES ARE TO BE REDUCED ONLY FROM THE EXPOR T TURNOVER. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT (A) IN SO FAR A S IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING O FFICER MAY BE RESTORED. ITA NO.1393/BANG/2015 PAGE 2 OF 3 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANT OF GROUNDS MENTIONED ABOVE. 3. THE LEARNED DR OF THE REVENUE SUPPORTED THE ASSE SSMENT ORDER, WHEREAS LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF L EARNED CIT (APPEALS). HE ALSO SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF T HE ASSESSEE BY THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F TATA ELXSI VS. ACIT IS REPORTED IN 349 ITR 98. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT THE ISSUE IS WHETHER THE AMOUNT INCURRED BY THE ASSESSEE ON TELECOMMUNIC ATION CHARGES AND TRAVELLING EXPENSES OUTSIDE THE COUNTRY AMOUNTING TO RS.331.08 LACS REDUCED BY THE AO FROM EXPORT TURNOVER IS ALSO REQUIRED TO BE REDUCED FROM TOTAL TURNOVER OR NOT. IN THIS REGARD, IT WAS HELD BY HONBLE KARNATAKA HIGH COURT THAT THE TOTAL TURNOVER IS SUM TOTAL OF DOMESTIC TURNOVER AND EXPORT TURNOVER AND THEREFORE, IF AN AMOUNT IS REDUCED FROM EXPORT TURNOVER, THE AMOUNT OF TOTAL TURNOVER ALSO GOES DOWN BY THE SAME AMOUNT. HENCE, BY RESPECTFULLY FOLLOWING THIS JUDG MENT OF HONBLE KARNATAKA HIGH COURT, WE DECLINE TO INTERFERE IN THE ORDER OF CIT (APPEALS). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 13 TH DAY OF OCTOBER, 2016. SD/- SD/- (ASHA VIJAYARAGHAVAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE. DATED: 13 TH OCTOBER, 2016. /NS/ ITA NO.1393/BANG/2015 PAGE 3 OF 3 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.