Assistant Commissioner of Income Tax, Bangalore V. M/s.Wrench Solutions Pvt. Ltd., Bangalore

ITA 1815/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5258 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 29 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: 25-10-2016
• 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 ITA NO. 1815/BANG/2016 ASSESSMENT YEAR : 2010-11 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(2), BANGALORE. VS. M/S. WRENCH SOLUTIONS, NO.76, FACILE TOWERS, VICTORIA ROAD, VIVEKNAGAR, BANGALORE 560 047. PAN: AABCC 1544P 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 THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1. THE ORDER OF THE LEARNED CIT(A) IS OPPOSED TO LAW AND FACTS OF THE CASE. 2. THE CIT(APPEALS) OUGHT TO HAVE CONSIDERED THAT THAT THE EXPENDITURE INCURRED IN FOREIGN CURRENCY, TOWARDS T ELECOM CHARGES AND RENDERING TECHNICAL SERVICES OUTSIDE IN DIA, TO BE EXCLUDED ONLY FROM EXPORT TURNOVER AND NOT FROM TOT AL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10A OF THE ACT, SINCE SUCH EXCLUSION IS PERMITTED TO ARRIVE AT THE EXPORT TURNOVER ITA NO.1815/BANG/2016 PAGE 2 OF 3 ONLY AS PER THE DEFINITIONS GIVEN IN SEC. 10A AND T OTAL TURNOVER HAS NOT BEEN DEFINED IN THE SAME. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED A T THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT( A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND TH AT OF THE ASSESSING OFFICER MAY BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS MENTIONED ABOVE. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL WHETHER THE CIT(APPEALS) WAS JUSTIFIED IN ACCEPTING THE CLAIM OF ASSESSEE TH AT EXPENDITURE INCURRED IN FOREIGN CURRENCY, TOWARDS TELECOM CHARGES AND RE NDERING TECHNICAL SERVICES OUTSIDE INDIA EXCLUDED FROM EXPORT TURNOVE R IS ALSO TO BE EXCLUDED FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTAT ION OF DEDUCTION U/S 10A OF THE ACT. 3. THIS ISSUE IS COVERED BY THE JUDGMENT OF THE HON 'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD., 341 ITR 98 (KAR) IN WHICH IT HAS BEEN HELD THAT IF CERTAIN EXPENSES ARE EXCLUDED FRO M THE EXPORT TURNOVER, THE SAME SHOULD ALSO BE EXCLUDED FROM THE TOTAL TUR NOVER. SINCE THE CIT(APPEALS) HAS DECIDED THE ISSUE AS PER JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD. (SUPRA) , WE FIND NO INFIRMITY IN THE ORDER OF CIT(APPEALS). ACCORDINGL Y, THE ORDER OF CIT(APPEALS) IS CONFIRMED ON THIS ISSUE AND THE APP EAL OF THE REVENUE IS DISMISSED. ITA NO.1815/BANG/2016 PAGE 3 OF 3 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. 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.