DCIT, CHENNAI V. Servion Global Solutions Ltd., CHENNAI

ITA 2010/CHNY/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4012 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 13-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 01-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N DEVANATHAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! .#$#%, ' !( BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.2010/MDS/2016 % *% / ASSESSMENT YEAR : 2009-10 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(1), CHENNAI - 600 034. V. M/S SERVION GLOBAL SOLUTIONS LTD., PLOT NO.4/600 & 4/197, 7 TH STREET, DR. VSI ESTATE, PHASE II, THIRUVANMIYUR, CHENNAI - 600 034. PAN : AAACI 0947 F (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI SASIKUMAR, JCIT ./,- 0 1 / RESPONDENT BY : SH. N. DEVANATHAN, ADVOCATE 2 0 3' / DATE OF HEARING : 13.10.2016 45* 0 3' / DATE OF PRONOUNCEMENT : 23.11.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 15, CHEN NAI, DATED 18.03.2016 AND PERTAINS TO ASSESSMENT YEAR 2009-10. 2. SHRI SASIKUMAR, THE LD. DEPARTMENTAL REPRESENTAT IVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS EXEMPTION CLAIMED BY THE ASSESSEE UNDER SECTION 10A OF THE IN COME-TAX ACT, 2 I.T.A. NO.2010/MDS/16 1961 (IN SHORT 'THE ACT'). ACCORDING TO THE LD. D. R., STP I UNIT HAS NOT SATISFIED THE CONDITION STIPULATED UNDER SECTIO N 10A OF THE ACT. THE EMPLOYEES OF BOTH THE UNITS STP I AND II ARE ON E AND THE SAME. THE PRODUCT, SERVICE AND INFRASTRUCTURE ARE ALSO TH E SAME. THEREFORE, ACCORDING TO THE LD. D.R., THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION. REFERRING TO THE ORDER OF THE CIT(APPEA LS), THE LD. D.R. SUBMITTED THAT THE CIT(APPEALS), BY PLACING HER REL IANCE ON THE ORDER OF THIS TRIBUNAL, ALLOWED THE CLAIM OF THE AS SESSEE. 3. WE HAVE HEARD SH. N. DEVANATHAN, THE LD.COUNSEL FOR THE ASSESSEE, ALSO. THE LD.COUNSEL SUBMITTED THAT SIMI LAR ARGUMENT WAS ADVANCED ON BEHALF OF REVENUE FOR THE ASSESSMEN T YEAR 2005- 06 AND THIS TRIBUNAL, BY FOLLOWING ITS EARLIER ORDE R, ALLOWED THE CLAIM OF THE ASSESSEE, THEREFORE, IT IS COVERED IN FAVOUR OF THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE OBJECTION OF THE LD. D.R. IS THAT STP I UNIT AND NON-STP UNIT AR E USING THE SAME INFRASTRUCTURE, EMPLOYEES, ETC. THIS WAS EXAMINED BY THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE, FOR THE EARLIER ASSESSM ENT YEAR, AND THIS TRIBUNAL FOUND THAT THE ASSESSEE IS ELIGIBLE F OR EXEMPTION UNDER SECTION 10A OF THE ACT. IN VIEW OF THE ABOVE ORDER OF THIS TRIBUNAL, THERE IS NO REASON TO TAKE A DIFFERENT VIEW FOR THE YEAR UNDER 3 I.T.A. NO.2010/MDS/16 CONSIDERATION. THEREFORE, BY PLACING RELIANCE ON T HE ORDER OF THIS TRIBUNAL FOR THE EARLIER ASSESSMENT YEAR, THIS TRIB UNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 5. THE REVENUE HAS RAISED ONE MORE GROUND WITH REGA RD TO EXCLUSION OF FOREIGN CURRENCY EXPENDITURE FROM THE EXPORT TURNOVER. 6. EVEN THOUGH NO ARGUMENT WAS ADVANCED FROM EITHER SIDE, THIS TRIBUNAL FINDS THAT BOTH DENOMINATOR AND NUMER ATOR SHALL BE THE SAME. THEREFORE, ONCE THE EXPENDITURE INCURRED IN FOREIGN CURRENCY WAS EXCLUDED FROM TOTAL TURNOVER, THE SAME IS ALSO TO BE EXCLUDED FROM EXPORT TURNOVER. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUT HORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 23 RD NOVEMBER, 2016 AT CHENNAI. SD/- SD/- ( ! .#$#% ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 23 RD NOVEMBER, 2016. KRI. 4 I.T.A. NO.2010/MDS/16 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-15, CHENNAI-34 4. 2 ;3 /CIT-6, CHENNAI-34 5. 9< .3 /DR 6. =% > /GF.