DCIT, Bangalore V. M/s. Robert Bosch Engineering & Business solution Ltd, Bangalore

ITA 15/BANG/2011

• Counselvise Citation: 1521114 RSA 2011
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 10-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ETWA MUNDA
• Assessee Lawyers: S ANANTHA
• Keywords: Question of law
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE SHRI BARATHVAJA SANKAR, VICE-PRESIDENT AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.15(BANG)/2011 (ASSESSMENT YEAR: 2006-07) DEPUTY COMMISSIONER OF INCOME-TAX LTU, BANGALORE. VS. APPELLANT M/S.ROBERT BOSCH ENGINEERING & BUSINESS SOLUTIONS LTD., NO.123, INDUSTRIAL LAYOUT, KORAMANGALA, HOSUR ROAD, BANGALORE. RESPONDENT PAN: AAACR7108R APPELLANT BY: SHRI ETWA MUNDA. RESPONDENT BY : SHRI S.ANANTHA. DATE OF HEARING: 28-12-2011 DATE OF PRONOUNCEMENT: 28-12-2011 O R D E R PER N . BARATHVAJA SANKAR, VP : THIS IS AN APPEAL PREFERRED BY THE REVENUE FOR THE ASSESSMENT YEAR 2006-07 IN THE CASE OF THE ASSESSEE - M/S.ROBERT BOSCH ENGINEERING & BUSINESS SOLUTIONS L TD., BANGALORE, AGAINST THE APPELLATE ORDER DATED 25-11- 2010 OF THE CIT(A)-LTU, BANGALORE. 2. THE ONLY ISSUE BROUGHT BEFORE US FOR ADJUDICATIO N BY THE REVENUE IS WHETHER THE CIT(A) HAS ERRED IN DIRE CTING THE AO TO EXCLUDE TELECOMMUNICATION CHARGES AND EXPENDITUR E IN ITA 15(BANG)/2011 PAGE 2 OF 3 FOREIGN CURRENCY FROM BOTH EXPORT TURNOVER AND TOTA L TURNOVER IN THE COMPUTATION OF DEDUCTION U/S 10A OF THE INCOME- TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT']. 3. WE HAVE HEARD BOTH SIDES AND CONSIDERED THE FACT S AND MATERIALS ON RECORD. LEARNED CHARTERED ACCOUNT ANT APPEARING FOR THE ASSESSEE FILED COMPILATION CONSIS TING OF VARIOUS ORDERS AND PLEADED THAT THIS ISSUE HAS BEEN DECIDED IN ASSESSEES FAVOUR IN ITS OWN CASE BY THE HONBLE KA RNATAKA HIGH COURT AND THE SPECIAL BENCH DECISION IN THE CASE OF SAK SOFT LTD. (2009)(313 ITR (AT) 353) IS IN ASSESSEES FAVOUR. WE FIND THAT THIS TRIBUNAL, IN ASSESSEES OWN CASE FOR ASSE SSMENT YEAR 2003-04, HAD AN OCCASION TO CONSIDER THIS ISSUE AND BY ITS ORDER DATED 1-5-2009 IN ITA NO.890(BANG)/08 ALLOWED THE A PPEAL OF THE ASSESSEE FOLLOWING THE SPECIAL BENCH DECISION I N THE CASE OF SAK SOFT LTD. (SUPRA). THIS ORDER OF THE TRIBUNAL WAS TAKEN UP I N APPEAL BY THE REVENUE TO THE HONBLE HIGH COURT OF KARNATAKA AND THE HONBLE HIGH COURT, BY ITS ORDER DATED 30-8 -2011 IN ITA NO.697 OF 2009(IN THE CASE OF THE ASSESSEE) AND ITA NO.70/2009 IN THE CASE OF CIT VS. M/S.TATA ELXSI LTD .) ITA NO.818/2009 ETC., HAS DECIDED IN FAVOUR OF THE ASSE SSEE. THE HIGH COURT WAS DEALING WITH THE FOLLOWING QUESTION: WHETHER THE TRIBUNAL WAS CORRECT IN HOLDING THAT WHEN COMPUTING RELIEF UNDER SECTION 10-A OF THE ACT THE AMOUNT OF COMMUNICATION EXPENSES SHOULD BE EXCLUDED FROM THE TOTAL TURNOVER IF THE SAME ARE REDUCED FROM EXPORT TURNOVER? WHILE ANSWERING THE ABOVE-SAID QUESTION, THE HONBL E HIGH COURT AT PARA.11 OF ITS ORDER HELD AS UNDER: ITA 15(BANG)/2011 PAGE 3 OF 3 11. IN THAT VIEW OF THE MATTER, WE DO NOT SEE ANY ERROR COMMITTED BY THE TRIBUNAL IN FOLLOWING THE JUDGMENTS RENDERED IN THE CONTEXT OF SECTION 80HHC IN INTERPRETING SECTION 10-A WHEN THE PRINCIPLE UNDERLYING BOTH THESE PROVISIONS IS ONE AND THE SAME. THEREFORE, WE DO NOT SEE ANY MERIT IN THESE APPEALS. THE SUBSTANTIAL QUESTION OF LAW FRAMED IS ANSWERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE HO NBLE HIGH COURT IN THE CASE OF THE SAME ASSESSEE, WE HAVE NO OPTION EXCEPT TO DISMISS THE REVENUES APPEAL. 4. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT AT THE END OF TH E HEARING ON 28 TH DECEMBER, 2011 SD/- SD/- (SMT. P.MADHAVI DEVI) JUDICIAL MEMBER (N.BHARATHVAJA SANKAR) VICE-PRESIDENT PLACE : BANGALORE DATED: 28 TH DECEMBER,2011. EKS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE