ACIT, Hyderabad V. HSBC Electronic Data Processing India P.Ltd, Hyderabad

ITA 1409/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9884 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 10-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITHA BISWAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI AKBER BASHA, ACCOUNTANT MEMBER I.T.A. NO. 1409/HYD/2010 (ASSESSMENT YEAR 2004-05) THE ACIT, CIRCLE 2(2) HYDERABAD VS. M/S. HSBC ELECTRONIC DATA PROCESSING INDIA PVT. LTD. HYDERABAD PAN: AAACH8235M APPELLANT RESPONDENT APPELLANT BY: SMT. NIVEDITHA BISWAS RESPONDENT BY: NONE O R D E R PER NRS GANESAN, JM: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, HYDERABAD DATED 25.8.2010. 2. THE NOTICE OF HEARING WAS ISSUED TO THE ASSESSEE BY RPAD. HOWEVER, THE POSTAL AUTHORITIES RETURNED THE NOTICE WITH THE ENDORSEMENT 'REFUSED'. IT IS WELL SETTLED PRIN CIPLES OF LAW THAT WHEN THE NOTICE ISSUED BY THE TRIBUNAL IS REFUSED B Y THE ASSESSEE IT AMOUNTS TO SERVICE OF NOTICE. THEREFOR E, WE PROCEEDED TO HEAR THE LEARNED DR AND DISPOSE OF THE APPEAL ON MERIT. 3. WE HEARD THE LEARNED DR. THE ONLY ISSUE ARISES FOR CONSIDERATION IS EXCLUSION OF COMMUNICATION CHARGES FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTI ON U/S. 10A OF INCOME-TAX ACT, 1961. THE ASSESSEE INCLUDED THE I.T.A. NO. 1409/HYD/2010 M/S. HSBC ELECTRONIC DATA PROCESSING INDIA PVT. LTD. ===================== 2 COMMUNICATION CHARGES IN THE EXPORT TURNOVER. HOWE VER, THE ASSESSING OFFICER EXCLUDED THE COMMUNICATION CHARGE S FROM THE EXPORT TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCT ION U/S. 10A OF THE ACT. ON APPEAL BY THE ASSESSEE, THE CIT(A) BY FOLLOWING THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN ITO VS. SAK SOFT LTD. [313 ITR 353 (AT)] DIRECTED THE ASSESSING OFFICER TO EXCLUDE THE COMMUNICATION CHARGES FROM THE TOTAL TU RNOVER ALSO IF THE SAME IS INCLUDED THEREIN. BOTH DENOMINATOR AND NUMERATOR SHALL CONSIST OF THE SAME FACTOR. ONCE COMMUNICATION CHARGES ARE EXCLUDED FROM THE EXPORT TURNOVER THE SAME SHALL NOT FORM PART OF THE TOTAL TURNOVER ALSO. THEREFORE, IN OUR OPINION, THE CIT(A) HAS RIGHTLY D IRECTED THE ASSESSING OFFICER TO EXCLUDE THE COMMUNICATION CHAR GES FROM THE TOTAL TURNOVER IN CASE IT IS INCLUDED THEREIN. IN VIEW OF THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN S AK SOFT LTD. (SUPRA), WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE SAME IS CONFIRMED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28TH JANUARY, 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD, DATED 28TH JANUARY, 2011 TPRAO I.T.A. NO. 1409/HYD/2010 M/S. HSBC ELECTRONIC DATA PROCESSING INDIA PVT. LTD. ===================== 3 COPY FORWARDED TO: 1. THE ACIT, CIRCLE 2(2), HYDERABAD. 2. M/S. HSBC ELECTRONIC DATA PROCESSING INDIA PVT. LTD., PLOT NO. 8, SURVEY NO. 64, HITECH CITY LAYOUT, MADHAPUR, HYDERABAD. 4. THE CIT(A)-III, HYDERABAD 5 THE CIT-2, HYDERABAD 6. THE DR A BENCH, ITAT, HYDERABAD