Shri Kannikaparameshwari Co-op Bank Ltd , Hassan V. The Deputy Commissioner of Income TAx Circle-1 , Hassan

ITA 1557/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1097 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 11-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE S HRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER I.T . A. NO. 1547 /BANG/20 16 (ASSESSMENT YEAR : 20 08 - 09 ) INCOME TAX OFFICER, WARD 4(1)(2), BANGALORE. . APPELLANT. VS. M/S. KENNAMETAL SHARED SERVICES PVT. LTD., UNIT 3,4,5 & 6, 5THFLOOR, NAVIGATOR BUILDING, ITYPL, WHITEFIELD, BANGALORE - 560 066 . .. RESPONDENT. APPELLANT BY : SHRI M.K. BIJU, JCIT (DR) (ITAT) - 3, BENGALURU. R E SPONDENT BY : SMT. SHEETAL BORKAR, ADVOCATE. DATE OF H EARING : 13.09.2017. DATE OF P RONOUNCEMENT : 22.09.2017 . O R D E R PER SHRI VIJAY P AL RAO, J .M . : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DT. 22.06.2017 OF COMMISSIONER OF INCOME TAX (APPEALS) - 12 , BANGALORE FOR THE ASSESSMENT YEAR 20 08 - 09 . 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 2 IT A NO. 1547 /BANG/201 6 3. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS REGARDING EXCLUSION OF TELECOMMUNICATION AND TRAVEL EXPENSES FROM THE EXPORT TURNOVER AS WELL AS TOTAL TURNOVER WHILE COMPUTING THE DEDUCT ION UNDER SECTION 10A OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE OF EXPENDITURE INCURRED TOWARDS TELECOMMUNICATION CHARGES IN FOREIGN CURRENCY IS REDUCED FROM EXPORT TURNOVER AN EQUAL AMOUNT SHOULD ALSO BE REDUCED FROM TOTAL TURNOVER WHILE COMPUTING THE DEDUCTION UNDER SECTION 10A OF THE ACT, IS COVERED 3 IT A NO. 1547 /BANG/201 6 IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. 349 ITR 98 (KAR). THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IS A BINDING PRECEDENT FOR THE BANGALORE BENCH OF THE TRIBUNAL. HENCE, THIS ISSUE IS DECIDED AGAINST THE REVENUE AND IN FAVOUR OF ASSESSEE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 22ND DAY OF SEPT.,2 01 7 . SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER SD/ - ( VIJAY PAL RAO ) JUDICIAL MEMBER BANGALORE, DT. 22 .09.2017. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLAT E TRIBUNAL BANGALORE.