DCIT, New Delhi V. M/s Symphony Marketings Solutions India Pvt. Ltd., Bengalore

ITA 1915/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2384 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 30-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RAKASH DUBEY SENIOR
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA NO.1915/DEL./2017 (ASSESSMENT YEAR : 2011-12) DCIT, CIRCLE 10 (1), VS. M/S. SYMPHONY MARKETING SO LUTIONS NEW DELHI. INDIA PVT. LTD., (MERGER WITH M/S. GENPACT INDIA), NO.2, SALAPURIA SOFTZONE BELLANDUR, VARTHUR HOBLI, BENGALURU 560 087. (PAN : AAKCS6235N) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VISHAL KALRA, ADVOCATE REVENUE BY : SHRI PRAKASH DUBEY, SENIOR DR DATE OF HEARING : 03.02.2021 DATE OF ORDER : 24.02.2021 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : APPELLANT, DCIT, CIRCLE 10 (1), NEW DELHI (HEREINAF TER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 25.10.2016 PASSE D BY THE COMMISSIONER OF INCOME-TAX (APPEALS), BENGALURU-6, BENGALURU QUA THE ASSESSMENT YEAR 2011-12 ON THE GROUND THAT :- ITA NO.1915/DEL./2017 2 WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS.2,06,11,115/- MADE BY THE AO ON ACCOUNT OF EXCES S DEDUCTION CLAIMED U/S 10A OF THE ACT. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : THE ASSESSEE COMPANY IS I NTO THE BUSINESS OF IT ENABLED SERVICES AND PROVISION OF DIGITAL IMA GING SERVICES. ASSESSEE COMPANY CLAIMED DEDUCTION UNDER SECTION 10 A OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) TO THE TUNE OF RS.29,48,05,888/-. ASSESSING OFFICER (AO) HAS DECL INED TO FOLLOW THE DECISION RENDERED BY HONBLE KARNATAKA HIGH COU RT IN CASE OF M/S. TATA ELXSI LTD. & ORS. ON THE GROUND THAT THE DEPARTMENT HAS NOT ACCEPTED THE SAME IN PRINCIPLE AS IT HAS FILED SLP BEFORE THE HONBLE SUPREME COURT WHICH IS PENDING FOR DISPOSAL AND THEREBY REDUCED THE ELIGIBLE DEDUCTION U/S 10A OF THE ACT T O RS.27,41,94,773/- FROM RS.29,48,05,888/- CLAIMED BY THE ASSESSEE COMPANY AND ADDED EXCESS CLAIM OF DEDUCTION OF RS.2 ,06,11,115/- TO THE TOTAL INCOME OF THE ASSESSEE. 3, ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT ( A) BY WAY OF FILING THE APPEAL WHO HAS PARTLY ALLOWED THE APPEAL . FEELING AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT (A), T HE REVENUE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING THE PR ESENT APPEAL. ITA NO.1915/DEL./2017 3 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. AO HAS REDUCED THE COMMUNICATION EXPENSES, INSUR ANCE CHARGES AND TRAVELLING EXPENSES FROM THE TOTAL EXPO RT TURNOVER BY COMPUTING THE TURNOVER ELIGIBLE FOR DEDUCTION U/S 1 0A OF THE ACT AND HAS DECLINED TO FOLLOW THE DECISION RENDERED BY HONBLE KARNATAKA HIGH COURT IN CASE OF M/S. TATA ELXSI LTD . & ORS. WHICH IS DULY APPLICABLE TO THE FACTS AND CIRCUMSTANCES O F THE CASE AS FROM EXPORT TURNOVER, COMMUNICATION EXPENSES, INSUR ANCE CHARGES AND TRAVELLING EXPENSES CANNOT BE REDUCED IN ORDER TO COMPUTE THE EXPORT TURNOVER FOR THE PURPOSE OF DEDUCTION U/S 10 A OF THE ACT. 6. NOT FOLLOWING THE JUDGMENT RENDERED BY HONBLE H IGH COURT MERELY ON THE GROUND THAT THE SAME HAS BEEN CHALLEN GED BY WAY OF FILING OF SPECIAL LEAVE PETITION (SLP) BEFORE THE H ONBLE SUPREME COURT IS NOT PERMISSIBLE AS THE QUASI-JUDICIAL AUTH ORITIES REQUIRE TO MAINTAIN THE JUDICIAL DISCIPLINE BY FOLLOWING THE D ECISIONS RENDERED BY HONBLE HIGH COURT AND IN CASE, ANY SUCH DECISIO N IS OVERRULED QUASI JUDICIAL AUTHORITIES HAVE THE REMEDY UNDER TH E ACT. ITA NO.1915/DEL./2017 4 6. IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, FINDIN G NO ILLEGALITY OR PERVERSITY IN THE IMPUGNED ORDER PASS ED BY THE LD. CIT (A), PRESENT APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 24 TH DAY OF FEBRUARY , 2021. SD/- SD/- (R.K. PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 24 TH DAY OF FEBRUARY, 2021 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), BENGALURU-6, BENGALURU. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.