Commonsouth Infocom P Ltd., CHENNAI V. DCIT, CHENNAI

ITA 1423/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96458 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-09-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Keywords: Condonation of delay
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , ! ' #, % &' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ ITA NO.1423/MDS/2015 ) *) / ASSESSMENT YEAR : 2011-12 M/S COMMONSOUTH INFOCOM PVT. LTD., 1 ST FLOOR, AG-56, 3 RD STREET, ANNA NAGAR, CHENNAI - 600 040. PAN : AADCC 1858 L V. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2), CHENNAI - 600 034. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SH. SAROJ KUMAR PARIDA, ADVOCATE ./,- 0 1 / RESPONDENT BY : SH. P. RADHAKRISHNAN, JCIT 2 0 3% / DATE OF HEARING : 28.09.2015 45* 0 3% / DATE OF PRONOUNCEMENT : 20.11.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, CHENNAI , DATED 24.03.2015 AND PERTAINS TO ASSESSMENT YEAR 2011-12. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DI SALLOWANCE OF DEDUCTION CLAIMED UNDER SECTION 10A/10B OF THE INCO ME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2 I.T.A. NO.1423/MDS/15 2. SH. SAROJ KUMAR PARIDA, THE LD.COUNSEL FOR THE A SSESSEE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT DEDUCTION UNDER SECTION 10A OF THE ACT WAS NOT CLAIMED BEFORE THE ASSESSING OFFICER IN THE RETURN OF INCOME. ACCORDING TO THE LD. COUNSEL, THE ASSESSEE IN FACT CLAIMED DEDUCTION UNDER SECTION 10B OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE MADE CLAIM OF DEDUCTION UNDER SECTION 10A OF THE ACT. HOWEVER, THE CIT(APP EALS) DIRECTED THE ASSESSING OFFICER TO CONSIDER THE RELATABLE CLA IM OF DEDUCTION UNDER SECTION 10A OF THE ACT. THE CIT(APPEALS) RES TRICTED THE CLAIM UNDER SECTION 10A OF THE ACT BY RESTRICTING EXPORT TURNOVER TO ` 1,85,06,675/- AS AGAINST ` 3,01,38,638/-. ACCORDING TO THE LD. COUNSEL, WHEN THE MATTER WAS PENDING BEFORE THE CIT (APPEALS), THE ASSESSEE MADE APPLICATION FOR CONDONATION OF DELAY IN REALIZATION OF EXPORT TURNOVER. NOW THE DELAY IN REALIZATION IS C ONDONED BY AN ORDER DATED 04.06.2015. THIS ORDER DATED 04.06.201 5 WAS NOT AVAILABLE BEFORE THE CIT(APPEALS) WHEN THE APPEAL W AS DISPOSED OF BY THE CIT(APPEALS) BY AN ORDER DATED 24.03.2015. THEREFORE, THE LD.COUNSEL SUBMITTED THAT THE MATTER MAY BE REMITTE D BACK TO THE FILE OF THE ASSESSING OFFICER. 3 I.T.A. NO.1423/MDS/15 3. ON THE CONTRARY, SH. P. RADHAKRISHNAN, THE LD. D EPARTMENTAL REPRESENTATIVE, SUBMITTED THAT SINCE THE DELAY IN R EALIZATION OF EXPORT TURNOVER WAS CONDONED BY ORDER DATED 4 TH JUNE, 2015 AFTER THE ORDER OF THE CIT(APPEALS), THE MATTER MAY BE RE MITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATI ON. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE CIT( APPEALS) DIRECTED THE ASSESSING OFFICER TO CONSIDER THE RELA TABLE CLAIM OF DEDUCTION UNDER SECTION 10A OF THE ACT BY FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT IN HEARTLAND KG INFORMATION LTD. (TCA NO.625 OF 2009 DATED 19.8.2013). HOWEVER, HE RESTRICTED T HE EXPORT TURNOVER TO ` 1,85,06,675/- AS AGAINST THE CLAIM OF ` 3,01,38,638/-. NOW THE ASSESSEE HAS PRODUCED A COPY OF THE ORDER F ROM UNION BANK OF INDIA CONDONING THE DELAY IN RECEIPT OF EXP ORT PROCEEDS TO THE EXTENT OF ` 1,04,71,501/-. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RECO NSIDERED BY THE ASSESSING OFFICER BY EXAMINING THE COMMUNICATION DA TED 04.06.2015 FROM UNION BANK OF INDIA. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE ISSUE OF DE DUCTION UNDER SECTION 10A OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL EXAMINE THE C OMMUNICATION 4 I.T.A. NO.1423/MDS/15 RECEIVED BY THE ASSESSEE FROM UNION BANK OF INDIA D ATED 04.06.2015 AND THEREAFTER DECIDE THE MATTER IN ACCO RDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE . 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 20 TH NOVEMBER, 2015 AT CHENNAI. SD/- SD/- ( ! ' # ) ( ... ) (CHANDRA POOJARI) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 20 TH NOVEMBER, 2015. KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-1, CHENNAI 4. PCIT, CHENNAI-1, CHENNAI 5. 9< .3 /DR 6. ) = /GF.