ITO Ward-1(1)(2), Bangalore V. M/s. Anthem Biosciences Pvt Ltd., Bangalore

ITA 1841/BANG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9252 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PRAVEENA
• Section: 143(3); 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-B BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K, JUDICIAL MEMBER ITA NO.1841/BANG/2016 (ASSESSMENT YEAR: 2010-11) REVENUE BY : MS. S. PRAVEENA, ADDL. CIT ASSESSEE BY : NONE DATE OF HEARING : 30.11.2016 DATE OF PRONOUNCEMENT : 02.12 .2016 ORDER PER GEORGE GEORGE K, JM : THIS APPEAL AT INSTANCE OF DEPARTMENT IS DIRECTED A GAINST CIT(A) ORDER DT:30.08.2016. THE RELEVANT ASSESSMENT YEAR IS 2010 2011. INCOME TAX OFFICER WARD -1(1)(2), BANGALORE. VS. M/S. ANTHEM BIOSCIENCES PVT. LTD., NO. 49, CANARA BANK ROAD, BOMMASANDARA INDUSTRIAL AREA, HOSUR ROAD, BANGALORE 560 099. PAN : AAFCA7588P APPELLANT RESPONDENT ITA NO. 1662/BANG/2016 PAGE 2 OF 5 2. GROUNDS RAISED READ AS FOLLOWS: ITA NO. 1662/BANG/2016 PAGE 3 OF 5 3. BRIEF FACTS OF THE CASE ARE AS FOLLOWS : ASSESSEE IS COMPANY, HAVING 100% EXPORT ORIENTED UNDERTAKING. FOR AY 2010-2011, THE RETURN OF INCOME WAS FILED DECLARING TOTAL INCOME OF RS.22,85,950/- AFTE R CLAIMING EXEMPTION U/S 10B TO THE TUNE OF RS.3,64,07,920/-. THE ASSESSMENT U/S 143(3) WAS COMPLETED VIDE ORDER DT 31.01.2013. IN ASSESSMENT COMPLETED, THE AO RECOMPU TED DEDUCTION U/S 10B OF THE ACT BY EXCLUDING FROM EXPO RT TURNOVER, CERTAIN EXPENSES WITHOUT DEDUCTING THE SA ME FROM TOTAL TURNOVER. THE AO FURTHER HELD THAT DEDUCTION U/S 10B IS TO ALLOWED ONLY AFTER SETTING OFF THE BROUGHT FORWA RD LOSSES. 4. AGGRIEVED, THE ASSESSEE PREFERRED ON APPEAL TO T HE FIRST APPELLATE AUTHORITY. THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE. THE CIT(A) FOLLOWED THE JUDGMENTS OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. YO KOGAWA INDIA LTD. (341 ITR 385) AND CIT VS. TATA ELXSI (34 9 ITR 98). ITA NO. 1662/BANG/2016 PAGE 4 OF 5 5. AGGRIEVED, THE REVENUE HAS FILED THE PRESENT APP EAL BEFORE THE TRIBUNAL, THE LEARNED DR RELIED ON THE GROUNDS RAIS ED. THE LEARNED AR SUBMITTED THAT THE ISSUES RAISED ARE COV ERED IN FAVOUR OF ASSESSEE BY JURISDICTIONAL HIGH COURT JUD GMENTS, WHICH HAS BEEN RELIED ON BY THE CIT (A). 6. I HAVE HEARD RIVAL SUBMISSION AND PERUSED THE M ATERIAL ON RECORD. THE HONBLE HIGH COURT IN THE CASE OF CIT V S TATA ELXSI (SUPRA) HAS HELD THAT EXPENDITURE EXCLUDED FROM EXP ORT TURNOVER, HAS TO BE EXCLUDED FROM EXPORT TURNOVER, HAS TO BE EXCLUDED ALSO FROM THE TOTAL TURNOVER, WHILE COMPUT ING DEDUCTION U/S 10B OF THE ACT. FURTHER, THE HONBLE HIGH COURT IN THE CASE OF CIT VS YOKOGAWA INDIA LTD (SUPRA) HA S HELD THAT DEDUCTION U/S 10B OF THE ACT IS TO BE COMPUTED, BEF ORE SETTING OFF THE FORWARD LOSES. IN VIEW OF ABOVE TWO JUDGME NTS OF THE HONBLE HIGH COURT, I HOLD, CIT (A) IS JUSTIFIED IN ALLOWING THE APPEAL OF THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF DEPARTMENT IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02-12-2016. SD/- ( GEORGE GEORGE K. ) JUDICIAL MEMBER PLACE : BANGALORE DATED : 02/12/2016 /NS/ ITA NO. 1662/BANG/2016 PAGE 5 OF 5 COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A)-II BANGALORE 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT RE GISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE