DCIT, CHENNAI V. Babcock Borsing Softech P. Ltd., CHENNAI

ITA 1902/CHNY/2015

• Counselvise Citation: 190221714 RSA 2015
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 26-08-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R DHIRAJ
• Section: 10B

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 ] ./ I.T.A.NO.1902/MDS/2015 / ASSESSMENT YEAR : 2010-11 THE DY. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE I(2) CHENNAI VS. M/S BABCOCK BORSING SOFTECH P. LTD APEX PLAZA 3 RD FLOOR NO.3 NUNGAMBAKKAM HIGH ROAD CHENNAI 600 034 [PAN AABCB 2415 N ] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT /RESPONDENT BY : SHRI R. DHI RAJ, ADVOCATE / DATE OF HEARING : 29 - 10 - 2015 ! / DATE OF PRONOUNCEMENT : 13 - 11 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, CHENNA I, DATED 27.5.2015 AND PERTAINS TO ASSESSMENT YEAR 2010-11. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DEDUCTIO N U/S 10B OF THE ACT. ITA NO.1902/15 :- 2 -: 3. SHRI A.V. SREEKANTH, LD. DEPARTMENTAL REPRESENTATIV E SUBMITTED THAT THE ASSESSING OFFICER EXCLUDED TELEC OMMUNICATION AND FOREIGN TRAVEL EXPENSES INCURRED IN FOREIGN CURRENC Y FROM THE EXPORT TURNOVER. HOWEVER, THE SAME WAS NOT EXCLUDED FROM THE TOTAL TURNOVER. THE CIT(A), BY FOLLOWING THE DECISION OF SPECIAL BENCH OF THIS TRIBUNAL IN ITO VS SAK SOFT LTD, 313 ITR 353( AT) DIRECTED THE ASSESSING OFFICER TO REDUCE THE TELECOMMUNICATION A ND FOREIGN TRAVEL EXPENSES ALSO FROM THE TOTAL TURNOVER. ACCORDING T O THE LD. DR, AN APPEAL IS PENDING BEFORE THE HIGH COURT AGAINST THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN SAK SOFT LTD (SUP RA), THEREFORE, TO KEEP THE MATTER ALIVE, THE REVENUE HAS FILED THE AP PEAL. 4. WE HEARD SHRI R. DHIRAJ, LD. COUNSEL FOR THE ASSESS EE ALSO. 5. ADMITTEDLY, THE ASSESSING OFFICER EXCLUDED TELECOMMUNICATION AND FOREIGN TRAVEL EXPENSES INCUR RED IN FOREIGN CURRENCY FROM THE EXPORT TURNOVER. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT BOTH DENOMINATOR AND NUMERATOR SHALL B E OF THE SAME FACTOR. ONCE THE TELECOMMUNICATION AND FOREIGN TRA VEL EXPENSES INCURRED IN FOREIGN CURRENCY ARE EXCLUDED FROM THE EXPORT TURNOVER, THE SAME HAS TO BE EXCLUDED FROM THE TOTAL TURNOVER ALS O. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH T HE ORDER OF THE LOWER AUTHORITY. THE REVENUE HAS FILED THE APPEAL BEFORE THIS TRIBUNAL ONLY ITA NO.1902/15 :- 3 -: ON THE GROUND THAT ITS APPEAL IS PENDING BEFORE THE HIGH COURT AGAINST THE ORDER OF THE SPECIAL BENCH OF THIS TRIBUNAL IN SAK SOFT LTD (SUPRA). THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MER E PENDENCY OF APPEAL BEFORE THE HIGH COURT CANNOT BE A REASON TO TAKE A DIFFERENT VIEW. ACCORDINGLY, THE ORDER OF THE CIT(A) IS CONF IRMED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER, 2015, AT CHENNAI. SD/- SD/- ( . ! ) (A. MOHAN ALANKAMONY) ' / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 13 TH NOVEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF