Nuance Transcription Services India Private Limited, Bangalore V. DCIT, Bangalore

ITA 1486/BANG/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4660 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 21-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SANDEEP GOEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE S HRI N.V. VASUDEVAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER I.T . (T.P) A. NO. 1486 /BANG/20 15 (ASSESSMENT YEAR : 20 10 - 11) M/S. NUANCE TRANSCRIPTION SERVICES INDIA P VT. LTD., NO.72/32, 10 GREEN LEAF LAYOUT, GROUND FLOOR, 80 FT. PERIPHERAL ROAD, 4 TH BLOCK, KORAMANGALA, BANGALORE - 560 034 . . APPELLANT. VS. DY. COMMISSIONER OF INCOME T AX, CIRCLE 12(2), BANGALORE. .. RESPONDENT. APPELLANT BY : SHRI VISHAL KALRA, ADVOCATE. R E SPONDENT BY : DR. SANDEEP GOEL, ADDL. CIT (D.R) DATE OF H EARING : 22.05.2018. DATE OF P RONOUNCEM ENT : 08 .06 .201 8 . O R D E R PER SHRI INTURI RAMA RAO , A .M . : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 5, BANGALORE DT.21.10.2015 FOR THE ASSESSMENT YEAR 2010 - 11. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 IT (TP) A NO. 1486 /BANG/201 5 1. THAT THE CIT (APPEALS) ERRED ON FACTS AND IN LAW IN UPHOLDING THE ORDER OF THE ASSESSING OFFICER COMPLETING THE ASSESSMENT AT AN INCOME OF INR 13,33,91,357 AS AGAINST RETURNED INCOME OF INR 9,76,43,019. 2. THAT THE CIT (APPEALS) ERRED ON FACTS AND IN LAW IN UPHOLDING THE ORDER OF THE ASSESSING OFFICER NOT ALLOWING SET OFF OF BROUGHT FORWARD BUSINESS LOSSES PERTAINING TO ASSESSMENT YEARS 2008 - 09 AND 2009 - 10, AGGREGATING TO INR 3,57,48,338. 3. THE ASSESSEE IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 ENGAGED IN THE BUSINESS OF IT ENABLED SERVICES. ITS STPI UNIT ELIGIBLE FOR DEDUCTION UNDER SECTION 10A OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). THE RETURN OF INCOME WAS FILED FOR THE ASSESSMENT YEAR 2010 - 11 ON 30.09.2010 DECLARING AN INCOME OF RS.9,76,43,019. 4. THE ONLY ISSUE IN TH IS APPEAL IS THAT THE LEARNED CIT (APPEALS) HAD NOT ALLOWED SETTING OFF OF THE BROUGHT FORWARD LOSSES. IT IS A CASE OF THE ASSESSING OFFICER THAT IN THE EARLIER ASSESSMENT YEAR, THE ASSESSEE WAS ENTITLED FOR BROUGHT FORWARD OF LOSSES ON ACCOUNT OF ORDERS OF APPELLATE AUTHORITY HOLDING THAT THE PROFITS OF STPI UNITS ARE EXEMPT FROM TAX WITHOUT SET OFF OF THE PROFITS FROM NON - STPI UNITS. THE LEARNED CIT (APPEALS) DENIED THE CLAIM ON THE GROUND THAT THE LOSSES OF STPI UNITS CAN 3 IT (TP) A NO. 1486 /BANG/201 5 BE SET OFF AGAINST THE PROFI TS OF THE STPI UNITS WH E REAS IT IS THE CONTENTION OF THE ASSESSEE - COMPANY THAT NO SET OFF OF LOSSES OF NON - STPI UNITS AGAINST THE PROFITS OF STPI UNITS. CONSEQUENTLY, EARLIER THERE WERE NO CARRY FORWARD LOSSES AVAILABLE BUT NOW ON ACCOUNT OF THE ORDERS OF THE APPELLATE AUTHORITY THERE WERE CARRY FORWARD LOSSES WHICH SHOULD BE SET OFF AGAINST THE INCOME DETERMINED UNDER THE HEAD BUSINESS . THIS ISSUE REQUIRES VERIFICATION OF FACTS, THEREFORE WE REMIT THIS ISSUE TO THE FILE OF ASSESSING OFFICER WITH A DI RECTION THAT THE UNABSORBED BUSINESS LOSSES DETERMINED TO BE CARRIED FORWARD SHALL BE SET OFF AGAINST THE PROFITS UNDER THE BUSINESS HEAD AFTER DUE VERIFICATION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSE S . ORDER PRONOUNCED IN THE OPEN COURT ON THE 8 TH DAY OF JUNE, 2018. SD/ - (N.V. VASUDEVAN) JUDICIAL MEMBER SD/ - (INTURI RAMA RAO) ACCOUNTANT MEMBER BANGALORE, DT.08.06.2018. *REDDY GP 4 IT (TP) A NO. 1486 /BANG/201 5 COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.