Deputy Commissioner of Income-Tax, Bangalore V. M/s.Musigma Business Solutions Pvt. Ltd., Bangalore

ITA 1763/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5253 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 07-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K BIJU JT BENGALURU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER IT(TP)A NOS. 1763 & 1764/BANG/2016 ASSESSMENT YEARS : 2010-11 & 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2), BANGALORE. VS. M/S. MU SIGMA BUSINESS SOLUTIONS PVT. LTD., KALYANI PLATINI, 4 TH & 5 TH FLOOR, ITPL MAIN ROAD, SY NO.6 & 24, KUNDALAHALLI VILLAGE, K.R. PURAM, BENGALURU 560 066. PAN: AAECM 3293N APPELLANT RESPONDENT APPELLANT BY : SHRI M.K. BIJU, JT.CIT(DR)(ITAT), BENGALURU RESPONDENT BY : NONE DATE OF HEARING : 20.06.2017 DATE OF PRONOUNCEMENT : 23.06.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE APPEALS ARE PREFERRED BY THE REVENUE AGAI NST THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING COMMON GROUNDS FOR THE ASSESSMENT YEARS 2010-11 & 2011-12:- 1. THE ORDER OF THE LD. CIT(A) IS OPPOSED TO THE LAW AND FACTS OF THE CASE. IT(TP)A NOS.1763 & 1764/BANG/2016 PAGE 2 OF 3 2. THE CIT(A) WAS NOT JUSTIFIED IN DIRECTING THE AO TO RECOMPUTE THE DEDUCTION ALLOWABLE U/S L0A OF THE AC T AFTER REDUCING SATELLITE LINK CHARGES EXPENSES AND TRAVEL LING EXPENSES FROM THE EXPORT TURNOVER. 3. THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT TH ERE IS NO PROVISION IN SEC. L0A WHICH REQUIRES THE CONCERNED EXPENSES, WHICH ARE REQUIRED TO BE REDUCED FROM THE EXPORT TU RNOVER AS PER CLAUSE (IV) OF THE EXPLANATION TO SECTION L0A TO BE REDUCED FROM THE TOTAL TURNOVER ALSO. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN DIRECTING TO FOLLOW THE RATIO LAID DOW N BY THE HON'BLE HC IN THE CASE OF CIT VS. TATA ELXSI LTD WHILE COMP UTING THE DEDUCTION U/S L0A, WHEN THE DEPARTMENT HAS FILED A SLP BEFORE THE HON'BLE SC ON THIS ISSUE WHICH IS PENDING ADJUD ICATION. 5. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED A T THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT CA) IN SO FAR AS IT IS RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL WHETHER THE CIT(APPEALS) WAS JUSTIFIED IN DIRECTING THE AO TO RECOMPUTE THE DEDUCTION ALLOWABLE U/S. 10A OF THE ACT AFTER REDUCING SATELLITE LINK CHARGE S EXPENSES AND TRAVELLING EXPENSES FROM THE EXPORT TURNOVER. THIS ISSUE IS C OVERED BY THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF TATA ELXSI LTD., 341 ITR 98 (KAR) IN WHICH IT HAS BEEN HELD THAT IF CERTAIN EXPENSES ARE EXCLUDED FROM THE EXPORT TURNOVER, THE SAME SHOULD ALSO BE E XCLUDED FROM THE TOTAL TURNOVER. SINCE THE CIT(APPEALS) HAS DECIDED THE I SSUE AS PER JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD. (SUPRA) , WE IT(TP)A NOS.1763 & 1764/BANG/2016 PAGE 3 OF 3 FIND NO INFIRMITY IN THE ORDER OF CIT(APPEALS). AC CORDINGLY, THE ORDER OF CIT(APPEALS) IS CONFIRMED AND THE APPEALS OF THE RE VENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF JUNE, 2017. SD/- SD/- ( A.K. GARODIA ) (SUNIL KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 23 RD JUNE, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.