Flowserve India Controls Private Limited, Bangalore V. DCIT, Bangalore

ITA 1623/BANG/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7683 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 23-08-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 17-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K R VASUDEVAN

Judgement Text

IT(TP)A.1623/BANG/2012 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. LALIET KUMAR, JUDICIAL MEMBER AND SHRI. G. MANJUNATH, ACCOUNTANT MEMBER I.T(TP).A NO.1623/BANG/2012 (ASSESSMENT YEAR : 2008-09) M/S. FLOWSERVE INDIA CONTROLS P. LTD, CIRCLE -1(1)(2), BENGALURU .. APPELLANT PAN : AAACF3288G V. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -11(3), BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. K. R. VASUDEVAN, ADVOCATE REVENUE BY : SMT. NEERA MALHOTRA, CIT-DR HEARD ON : 23.08.2017 PRONOUNCED ON : 23.08.2017 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE ASSESSEE AGAINS T THE ORDER U/S.143(3) R.W.S.144C OF THE ACT, PASSED BY THE DCI T, CIRCLE -11(3), BENGALURU, DT.19.10.2012, IN PURSUANCE TO THE DIREC TIONS OF THE DRP, FOR THE ASSESSMENT YEAR 2007-08. IT(TP)A.1623/BANG/2012 PAGE - 2 02. THE ASSESSEE HAS RAISED TP ISSUES IN GROUND NO. I AND CORPORATE TAX ISSUES IN GROUND NO.II BEFORE US. 03. THE LD. AR FOR THE ASSESSEE HAS SUBMITTED BEFOR E US THAT THE ASSESSEE HAS FILED AN APPLICATION FOR RESOLUTION OF TP ISSUES THROUGH MAP RESOLUTION, A COPY OF WHICH HAS BEEN FILED BY T HE ASSESSEE BEFORE THIS TRIBUNAL. IN VIEW OF THE LETTER FILED BY THE ASSESSEE, SUBSTANTIATING THE MAP RESOLUTION, NOTHING IS REQUIRED TO BE ADJUD ICATED IN RESPECT OF THE TP ISSUES. ACCORDINGLY, THE GROUND NO.I, RELAT ING TO TP ISSUES IS ALLOWED FOR STATISTICAL PURPOSE. 04. IN GROUND NO.II, THE GRIEVANCE OF THE ASSESSEE IS THAT THE LOWER AUTHORITIES HAVE ERRED IN RECOMPUTING THE DEDUCTION U/S.10A OF THE ACT, BY NOT ACCEPTING THE PLEA OF THE ASSESSEE THAT THE TRAVEL EXPENSES IF REDUCED FROM EXPORT TURNOVER OUGHT TO BE REDUCED FROM THE TOTAL TURNOVER AS WELL WHILE ARRIVING AT THE DEDUCTION U/ S.10A OF THE ACT. THE ASSESSEE RELIES ON THE JUDGMENT OF THE HONBLE KARNATAKA HIGH COURT IN THE MATTER OF TATA ELXSI LTD V. CIT [349 I TR 98) IN SUPPORT OF ITS CONTENTION. 05. THE LD. DR SUPPORTED THE ORDER OF THE LOWER AUT HORITIES. IT(TP)A.1623/BANG/2012 PAGE - 3 06. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. IN THIS REGARD, WE FIND THAT THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD V. CIT [349 ITR 98], HOLDS THE FIELD. THE HONBLE JURISDICTION AL HIGH COURT HAS HELD THAT THE EXPENSES WHICH ARE DEDUCTED FROM EXPO RT TURNOVER ARE ALSO REQUIRED TO BE DEDUCTED FROM THE TOTAL TURNOVE R ALSO FOR WORKING OUT THE DEDUCTION U/S.10A OF THE ACT. FOLLOWING TH E JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN TATA ELXSI LTD (SUPRA), WE ALLOW THIS GROUND OF THE ASSESSEE. 06. ASSESSEE HAS ALSO RAISED THE ISSUE OF LEVY OF I NTEREST U/S.234C AND 234D OF THE ACT, WHICH IS ONLY CONSEQUENTIAL. HENCE THE SAME IS DISMISSED. 07. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD DAY OF AUGUST, 2017. SD/- SD/- (G. MANJUNATH) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL M EMBER BENGALURU DATED : 23.08.2017 IT(TP)A.1623/BANG/2012 PAGE - 4 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY