Dy.CIT, Circle-2(3), Hyderabad V. M/s GSS America Infotech Limited, Hyderabad

ITA 1615/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74719 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 28-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 1615/HYD/2013 ASSESSMENT YEAR 2008-09 THE DEPUTY CIT CIRCLE-2(3) HYDERABAD VS. M/S. GSS AMERICA INFOTECH LTD., HYDERABAD PAN: AADCM6759Q APPELLANT RESPONDENT APPELLANT BY: SRI JEEVAN LAL LAVIDIYA RESPONDENT BY: NONE DATE OF HEARING: 26.03.2014 DATE OF PRONOUNCEMENT: 26.03.2014 ORDER PER CHANDRA POOJARI, A.M.: THIS APPEAL BY REVENUE IS DIRECTED AGAINST ORDER O F THE CIT(A)-III, HYDERABAD DATED 30 TH SEPTEMBER, 2013 FOR ASSESSMENT YEAR 2008-09. 2. THE REVENUE RAISED THE FOLLOWING GROUND: 1. THE CIT(A) OUGHT NOT TO ALLOW IN THE ABSENCE OF ANY SPECIFIC PROVISION IN LAW THAT THE TELECOMMUNICATIO N CHARGES, WHICH ARE REDUCED FROM THE EXPORT TURNOVER, SHOULD ALSO BE REDUCED FROM THE TOTAL TURNOVER OF THE BUSINESS FOR THE PURPOSE OF CALCULATING DEDUCTION U/S. 10A OF THE IT ACT, 1961. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF IT ENABLED SERVICES. IT HAS FILED ITS RETURN OF INCOME FOR THE A.Y. 2008-09 ON 29.9.2008 DECLARING TOTAL INCOME OF RS. 1,38,25,353. THE AO COMPLETED THE AS SESSMENT ON 30.11.2011 U/S. 143(3) OF THE ACT BY MAKING SEVERAL ADDITIONS AND DETERMINED THE TOTAL INCOME AT RS. 1,80,63,236 UNDE R NORMAL PROVISIONS AND RS. 22,51,27,123 U/S. 115 JB OF THE ACT. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). 2 ITA NO. 1615/HYD/2013 M/S. GSS AMERICA INFOTECH LTD. ======================== 4. THE CIT(A) HELD OBSERVED THAT THE TRIBUNAL, HYDERAB AD BENCH HAS DECIDED SIMILAR ISSUE BY HOLDING THAT THE TELECOM CHARGES SHOULD BE REDUCED BOTH FROM THE EXPORT TURN OVER AS WELL AS FROM THE TOTAL TURNOVER FOR THE PURPOSE OF CALCULAT ING EXEMPTION U/S. 10A OF THE INCOME-TAX ACT, 1961. ACCORDINGLY, THE AO WAS DIRECTED AND THE ASSESSEE WAS GIVEN RELIEF. AGGRIE VED, THE REVENUE IS IN APPEAL BEFORE US. 5. AFTER HEARING THE LEARNED DR, WE ARE OF THE OPINION THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL SPECIAL BENCH, CHENNAI IN THE CASE OF SAK SOFT LTD. (313 ITR 853) [121 TTJ 865) (CHENNAI) (SB)] WHEREIN HELD THAT WHEN EXPORT TURNOVER IS ADJUSTED, THE SAME ADJUSTME NT SHOULD BE CARRIED OUT TO TOTAL TURNOVER, WHICH ARE THE NUMERA TOR AND DENOMINATOR, RESPECTIVELY, IN THE FORMULA UNDER SUB SECTION (4) OF SECTION 10B OF THE ACT. BEING SO, IN OUR OPINION, THE TELECOM CHARGES SHOULD BE REDUCED BOTH FROM THE EXPORT TURN OVER AS WELL AS FROM THE TOTAL TURNOVER FOR THE PURPOSE OF CALCULAT ING DEDUCTION U/S. 10A OF THE ACT. IN VIEW OF THIS, THE GROUND TAKEN BY THE REVENUE IS REJECTED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 26 TH MARCH, 2013 SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 26 TH MARCH, 2014 TPRAO 3 ITA NO. 1615/HYD/2013 M/S. GSS AMERICA INFOTECH LTD. ======================== COPY TO: 1. THE DEPUTY CIT, CIRCLE-2(3), 8 TH FLOOR, 'B' BLOCK, IT TOWERS, MASAB TANK, HYDERABAD-500 004. 2. M/S. GSS AMERICA INFOTECH LTD., BLOCK 'B', 3 RD FLOOR, WING 2, CYBER GATEWAY, HI-TECH CITY, MADHAPUR, HYDERABAD-50 0 081. 3. THE CIT(A)-III, HYDERABAD 4. THE CIT-II, HYDERABAD. 5. THE DR, B BENCH, ITAT, HYDERABAD.