Deputy Commissioner of Income-tax, Bangalore V. M/s. Toshiba Software India Pvt. Ltd, Bangalore

ITA 1814/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7564 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 24-07-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 24-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R N PARBAT
• Assessee Lawyers: R DHIRAJ

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE S HRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER I.T . (T.P) A. NO. 1814 /BANG/20 16 (ASSESSMENT YEAR : 20 11 - 12 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 7(1) (1), BANGALORE. . APPELLANT. VS. M/S. TOSHIBA SOFTWARE INDIA PVT. LTD., 3/A, ESSAE VAISHNAVI, SOLITARE, KORAMANGALA, 3 RD BLOCK, BANGALORE - 560 034 . .. RES PONDENT. APPELLANT BY : SHRI R.N. PARBAT, CIT (D.R) R E SPONDENT BY : SHRI R. DHIRAJ, ADVOCATE. DATE OF H EARING : 27.09.2017. DATE OF P RONOUNCEMENT : 27 .09 .201 7 . O R D E R PER SHRI VIJAY P AL RAO, J .M . : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DT.22.07.2016 OF COMMISSIONER OF INCOME TAX (APPEALS) - 14, BANGALORE FOR THE ASSESSMENT YEAR 2008 - 09. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 2 IT (TP) A NO. 1814 /BANG/20 16 3. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS REGARDING THE EXPENSES INCURRED IN FOREIGN CURRENCY TOWARDS TELECOMMUNICATION CHARGES AND OTHER EXPENSES FROM EXPORT TURNOVER AS WELL AS TOTAL TURNOVER FOR COMPUT ATION OF DEDUCTION UNDER SECTION 10A OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 4. WE HAVE HEARD THE LEARNED D.R. AS WELL AS LEARNED A.R. AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE ISSUE OF EXPENDITURE INCURRED TOWARDS TELECOMMUNICATION CHARGES AND OTHER EXPENSES IN FOREIGN CURRENCY IS REDUCED FROM EXPORT TURNOVER AN EQUAL 3 IT (TP) A NO. 1814 /BANG/20 16 AMOUNT SHOULD ALSO BE REDUCED FROM TOTAL TURNOVER WHILE COMPUTING THE DEDUCTION UNDER SECTION 10A OF THE ACT, IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. 349 ITR 98 (KAR) . THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT HAS BEEN FOLLOWED IN A NUMBER OF CASES IN CO - ORDINATE BENCHES OF ITAT. HENCE, THIS ISSUE IS DEC IDED AGAINST THE REVENUE AND IN FAVOUR OF ASSESSEE. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH SEPT., 2017. SD/ - ( INTURI RAMA RAO ) A CCOUNTANT MEMBER SD/ - ( VIJAY PAL RAO ) JUDICIAL MEMBER BANGALORE, DT. 27 .09.2017. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIO R PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.