Appeal details
Counselvise Citation
[2015] 140 COUNSELVISE.COM (IT) 95195 (ITAT-BANGALORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
8 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
14-08-2015
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
B
Next Hearing Date
13-08-2015
Assessment Year
2010-2011
Appeal Filed On
09-12-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI GEORGE GEORGE, K, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA NO.1571(B)/2014 (ASSESSMENT YEAR : 2010-11) THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-6(1)(2), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE APPELLANT VS M/S SOBHA RENAISSANCE INFORMATION TECHNOLOGY PVT.LT D, SRIT HOUSE, NO.113/1B, ITPL MAIN ROAD, KUNDALAHALLI, BANGALORE-560 037 PAN NO.AAECS6273N RESPONDENT REVENUE BY : DR. P.K.SRIHARI, ADDL.CIT ASSESSEE BY : SHRI K.R.VASUDEVAN, ADVOCATE DATE OF HEARING : 13-08-2015 DATE OF PRONOUNCEMENT : 14-0 8-2015 O R D E R PER SHRI GEORGE GEORGE, K JM: THIS APPEAL AT THE INSTANCE OF REVENUE, IS DIRECTE D AGAINST THE CIT(A)S ORDER DATED 26-09-2014. THE RELEVANT ASSE SSMENT YEAR IS 2010- 11. 2. THE REVENUE IN ITS APPEAL HAS RAISED EIGHT GROUN DS. OUT OF THE EIGHT GROUNDS, GROUND NO.1,7 & 8 ARE GENERAL IN NAT URE AND NO SPECIFIC ADJUDICATION IS CALLED FOR AND HENCE THE SAME ARE D ISMISSED. ITA NO.1571 (BANG)2014 2 3. GROUND NO.2 & 3 IS WITH REGARD TO RE-COMPUTATION OF DEDUCTION U/S 10A OF THE IT ACT, 1961. GROUND NO.4 TO 6 IS W ITH REFERENCE TO AMOUNTS ADDED BACK BEING EMPLOYEES CONTRIBUTION TOWARDS PF AND ESI, THE REMITTANCE OF WHICH WAS BEYOND THE DUE DATE. 4. WE SHALL DISPOSE OF THE GROUNDS ISSUE WISE AS U NDER; 5. GROUND NO.2 & 3 (RE-COMPUTATION OF DEDUCTION U/S 10A OF THE IT ACT) 5.1 BRIEF FACTS OF THE ABOVE CASE ARE AS FOLLOWS; THE AO RE-COMPUTED THE DEDUCTION U/S 10A OF THE ACT , BY REDUCING CERTAIN AMOUNTS INCURRED IN FOREIGN CURRENCY FROM T HE EXPORT TURNOVER ON THE GROUND THAT THE SAID EXPENSES HAVE BEEN INCURRE D IN CONNECTION WITH RENDERING TECHNICAL SERVICES OUTSIDE INDIA. 5.2. ON APPEAL BEFORE THE CIT(A), IT WAS CONTENDED THAT IF THE EXPENSES ARE REDUCED FROM THE EXPORT TURNOVER NECES SARILY THE SAME OUGHT TO BE REDUCED ALSO FROM THE TOTAL TURNOVER WHILE CO MPUTING THE DEDUCTION U/S 10A OF THE IT ACT, 1961. FOR THE ABOVE PROPOSI TION, THE ASSESSEE RELIED ON THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S TATA ELXSI LTD REPORTED IN 349 ITR 98. THE CIT(A) FOLLOWING THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT ALLOWED TH E APPEAL OF THE ASSESSEE. ITA NO.1571 (BANG)2014 3 5.3. THE REVENUE BEING AGGRIEVED IS IN APPEAL BEFOR E US. 5.4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL ON RECORD. THE ISSUE RAISED BY THE REVENUE IS NO LONGER RES INTEGRA AND HAS NOW BEEN DECIDED BY THE HONBLE HIGH COURT OF K ARNATAKA IN THE CASE OF IN THE CASE OF TATA ELXSI LTD. IN 349 ITR 98(KAR .) WHEREIN IT HAS BEEN HELD THAT WHATEVER IS EXCLUDED FROM EXPORT TURNOVER SHOULD ALSO BE EXCLUDED FROM THE TOTAL TURNOVER. THE FACT THAT TH E REVENUE HAS NOT ACCEPTED THE DECISION OF THE HONBLE SUPREME COURT CANNOT BE THE BASIS NOT TO FOLLOW THE DECISION OF THE HONBLE KARNATAKA HIGH COURT. IN VIEW OF THE ABOVE REASONING, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE LEARNED CIT(A) AND WE CONFIRM THE SAME. IT IS ORDE RED ACCORDINGLY. 6. GROUND NO.4 TO 6 (ADDING BACK OF RS.18,31,008/- BEING EMPLOYEES CONTRIBUTION OF PF AND ESI ON ACCOUNT OF ITS REMISS ION BEYOND THE DUE DATE). 6.1. BRIEF FACTS IN RELATION TO THE ABOVE GROUNDS A RE AS FOLLOWS; THE AO DISALLOWED A SUM OF RS.18,31,008/- (RS.18,24 ,647/- TOWARDS EMPLOYEES CONTRIBUTION TO PF AND RS.6,361 TOWARDS E MPLOYEES CONTRIBUTION TO ESI) ON ACCOUNT OF DELAY IN REMITTANCE OF EMPLOY EES CONTRIBUTION OF PF & ESI. 6.2. BEFORE THE CIT(A) IT WAS CONTENDED THAT THE PA YMENTS HAVE BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN AN D THE SAME HAS TO BE ITA NO.1571 (BANG)2014 4 ALLOWED AS DEDUCTION. THE ASSESSEE FOR THE ABOVE PREPOSITION RELIED ON THE FOLLOWING JUDGMENT/ORDERS. A. CIT & OTHERS VS SABARI ENTERPRISES & OTHERS (200 7)298 ITR 141(KAR.) B. ASIA POWER PROJECTS (P)LTD VS DCIT (2007)(BANGAL ORE ITAT). C. KUBER HINGES(P)LTD VS ITO(2008) 120 TTJ 284(DELH I ITAT) D. SUNIL GOEL VS ACIT(2008) 118 TTJ 415 (DELHI ITAT ) E. DCIT VS SEAGRAM DISTILLERIES LTD (2009) ITA/2532 /DEL/2006(DELHI ITAT) 6.3. THE CIT(A) FOLLOWING THE JUDGMENT OF THE HONB LE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S SABARI ENTERPRISES & OTHERS (SUPRA) DECIDED THE ISSUE IN FAVOUR OF ASSESSEE. 6.4 WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE HONBLE JURISDICTIONAL HIGH COURT IN T HE CASE OF M/S SABARI ENTERPRISES (SUPRA) HELD AS FOLLOWS; THE EXPLANATION CLAUSE(VA) OF SECTION 36 OF THE I T ACT, FURTHER MAKES IT VERY CLEAR THAT THE AMOUNT ACTUALL Y PAID BY THE ASSESSEE ON OR BEFORE THE DUE DATE APPLICABLE I N THIS CASE AT THE TIME OF SUBMITTING RETURNS OF INCOME UN DER SECTION 139 OF THE ACT TO THE REVENUE IN RESPECT OF THE PREVIOUS YEAR CAN BE CLAIMED BY THE ASSESSEES FOR DEDUCTION OUT OF THEIR GROSS INCOME. THE ABOVE SAID STATUTORY PROVISIONS OF THE IT ACT ABUNDANTLY MAKE IT CLEAR THAT THE CONTENTION URGED ON BEHALF OF THE REVENUE THAT DEDUCTED FROM OUT OF GROSS INCOME FOR PAYMENT OF TA X AT THE ITA NO.1571 (BANG)2014 5 TIME OF SUBMISSION OF RETURNS UNDER SECTION 139 IS PERMISSIBLE ONLY IF STATUTORY LIABILITY OF PAYMENT OF PF OR OTHER CONTRIBUTION FUNDS REFERRED TO IN CLAUSE(B) A RE PAID WITHIN THE DUE DATE UNDER THE RESPECTIVE STATUTORY ENACTMENTS BY THE ASSESSEES AS CONTENDED BY THE LEA RNED COUNSEL FOR THE REVENUE IS NOT TENABLE IN LAW AND T HEREFORE, THE SAME CANNOT BE ACCEPTED BY US (PARA 7). 6.5. IN VIEW OF THE ABOVE REASONING OF THE HONBLE JURISDICTIONAL HIGH COURT, THE CIT(A) WAS JUSTIFIED IN ALLOWING THE APP EAL OF THE ASSESSEE AND WE SEE NO REASON TO INTERFERE WITH THE SAME. IT I S ORDERED ACCORDINGLY. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 14 TH AUGUST, 2015. SD/- SD/- (JASON P BOAZ) (GEORGE GEO RGE,K) ACCOUNTANT MEMBER JUDICIAL MEMBER D A T E D : 14-08-2015 PLACE: BANGALORE AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER AR, ITAT, BANGALORE
