M/s. HSBSoft Technologies Pvt. Ltd., Bangalore V. ITO, Bangalore

ITA 1408/BANG/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5517 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 09-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JACINTA ZIMIK VASHAI
• Assessee Lawyers: H SHAMBHU SHARMA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1408 & 1409/BANG/2010 (ASST. YEAR 2005-06 & 2006-07) M/S HSBSOFT TECHNOLOGIES PVT. LTD., NO.1362, 9 TH CROSS, 1 ST PHASE, J.P NAGAR, BANGALORE. . APPELLANT. VS. THE INCOME-TAX OFFICER, WARD-11(2), BANGALORE. . RESPONDENT APPELLANT BY : SHRI H SHAMBHU SHARMA RESPONDENT BY : SMT. JACINTA ZIMIK VASHAI O R D E R PER SMT. P MADHAVI DEVI, JUDICIAL MEMBER THESE APPEALS ARE FILED BY THE ASSESSEE. THE APPEAL S ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX (APPEALS) AT BANGALORE DATED 17.09.2010. THE APPEA LS ARISE OUT OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME-TAX A CT, 1961. ITA NO.1408/B/10 2 2. IN BOTH THE APPEALS, THE ASSESSEE IS AGGRIEVED B Y THE ORDER OF THE CIT(A) IN CONFIRMING THE ORDER OF THE AO IN REDUCIN G THE AMOUNT OF EXPORT TURNOVER BY INTERNET CHARGES AND NOT REDUCIN G THE SAME FROM THE TOTAL TURNOVER WHILE COMPUTING THE DEDUCTION U/ S 10A OF THE INCOME-TAX ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A COMPANY REGISTERED AS 100% EXPORT ORIENTED STP UNIT AND IS ENGAGED IN THE BUSINESS OF SOFTWARE DEVELOPMENT AND EXPORT. WHILE COMPUTING DEDUCTION U/S 10A OF THE INCOME-TAX ACT, THE AO EXC LUDED THE TELECOMMUNICATION EXPENSES AND EXPENDITURE IN FOREI GN CURRENCY FROM THE TOTAL TURNOVER ONLY AND DID NOT REDUCE THE SAME FROM THE TOTAL TURNOVER. 4. HAVING HEARD BOTH THE SIDES AND HAVING CONSIDERE D THE RIVAL CONTENTIONS, WE FIND THAT THIS ISSUE IS COVERED BY THE DECISION OF THE HONBLE CHENNAI SPECIAL BENCH IN THE CASE OF SAK SO FT LTD., 313 ITR 353 (AT) AND ALSO BY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE DECISION OF M/S GEM PLUS JEWELLERY INDIA LTD., 330 ITR 175. ITA NO.1408/B/10 3 5. RESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE A O TO REDUCE THE ABOVE EXPENDITURE FROM THE TOTAL TURNOVER ALSO WHILE COMPUTING THE DEDUCTING U/S 10A OF THE ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 5TH JUL, 2011. SD/- (P MADHAVI DEVI) JUDICIA L MEMBER VMS. BANGALORE DATED : 05/07/2011 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR, I TAT, BANGALORE.