DCIT, CHENNAI V. Amec Foster Wheeler India Private Limited, CHENNAI

ITA 1763/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8455 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 10-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' ,$ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. 1763/MDS/2016 ' (' / ASSESSMENT YEAR : 2010-11 THE DEPUTY COMMISSIONER OF INCOME-TAX, CORPORATE CIRCLE -1(1), CHENNAI 600 034. V. M/S.AMEC FOSTER WHEELER INDIA PRIVATE LIMITED, (FORMERLY FOSTER WHEELER INDIA P LTD.) 6 TH FLOOR, ZENITH BUILDING, ASCENDAS IT PARK, CSIR ROAD, TARAMANI, CHENNAI 600 113. PAN : AAACF3204C (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI A.V.SREEKANTH, JCIT ,-*+./ / RESPONDENT BY : SHRI SRIRAM SESHADRI, C.A. 0 .1$ / DATE OF HEARING : 01.09.2016 2!( .1$ / DATE OF PRONOUNCEMENT : 23.09.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) -1, CHENNAI DATED 09.03.2016 AN D PERTAINS TO ASSESSMENT YEAR 2010-11. 2 I.T.A. NO.1763/MDS/2016 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS EXCLU SION OF TELECOMMUNICATION EXPENSES BOTH FROM EXPORT TURNOVE R AND TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION UNDER SECTI ON 10A OF THE ACT. 3. SHRI A.V.SREEKANTH, THE LEARNED DEPARTMENT REPRE SENTATIVE SUBMITTED THAT THE ASSESSING OFFICER EXECUTED TELECOMMUNICATI ON EXPENSES FROM THE EXPORT TURNOVER. ON APPEAL BY THE ASSESSEE, THE CIT (A) BY PLACING RELIANCE ON THE SPECIAL BENCH DECISION OF THIS TRIBUNAL, DIRECT ED THE ASSESSING OFFICER TO EXCLUDE THE TELECOMMUNICATION EXPENSES FROM THE EXP ORT TURNOVER ALSO. ACCORDING TO THE LEARNED REPRESENTATIVE, THE REVENU E HAS ALREADY FILED AN APPEAL AGAINST THE DECISION OF THIS TRIBUNAL IN THE CASE OF SAK SOFT LIMITED REPORTED IN 313 ITR (AT) 353 (CHENNAI) AND THE SAME IS PENDING. THEREFORE, TO KEEP THE MATTER ALIVE, THE REVENUE FILED THE APPEAL BEFORE THIS TRIBUNAL. 4. WE HEARD SHRI SRIRAM SESHADRI, THE LEARNED REPRE SENTATIVE FOR THE ASSESSEE ALSO. THE LEARNED REPRESENTATIVE FOR THE A SSESSEE SUBMITTED THAT FOR THE PURPOSE OF COMPUTING ELIGIBLE DEDUCTION UNDER S ECTION 10A, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE DENOMINATOR AND NUMERATOR SHALL BE OF THE SAME FACTOR. ONCE THE TELECOMMUNICATION EXPENSES IN CLUDED IN THE TOTAL TURNOVER, THE SAME SHALL ALSO BE INCLUDED IN THE EX PORT TURNOVER. HOWEVER, THE ASSESSING OFFICER INCLUDED THE TELECOMMUNICATION EX PENSES IN THE EXPORT TURNOVER AND EXCLUDED THE SAME FROM THE TOTAL TURNO VER. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(A) HAS RI GHTLY FOUND THAT THE TELECOMMUNICATION EXPENSES HAS TO BE EXCLUDED BOTH FROM THE EXPORT TURNOVER 3 I.T.A. NO.1763/MDS/2016 AND THE TOTAL TURNOVER. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A) AND ACCORDIN GLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED ON 23 RD SEPTEMBER, 2016 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 23 RD SEPTEMBER, 2016. SP. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A) 4. 0 81 /CIT, 5. 69 ,1 /DR 6. :' ; /GF.