ACIT, CHENNAI V. Temenos India Private Limited, CHENNAI

ITA 2230/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8212 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 07-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R DURAIPANDIAN IRS
• Assessee Lawyers: A S SRIRAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . ! ' , #'$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO. 2230/MDS/2015 # % &% / ASSESSMENT YEAR : 2009-2010 THE ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 3(1) CHENNAI 600 034. VS. M/S. TEMENOS INDIA PVT. LTD NO.146, STERLING ROAD, NUNGAMBAKKAM, CHENNAI 600 034. [PAN AAACT 2612E ] ( / APPELLANT) ( /RESPONDENT) '( ) * / APPELLANT BY : SHRI. R. DURAIPANDIAN, IRS, JCIT. +,'( ) * /RESPONDENT BY : SHRI. A.S. SRIRAMAN, ADVOCATE ! ) - / DATE OF HEARING : 19-01-2016 ./& ) - / DATE OF PRONOUNCEMENT : 20-01-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL FILED BY THE DEPARTMENT IS DIRECTED A GAINST ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1 1, CHENNAI IN ITA NO.1912/CIT(A)-11/2013-14, DT 29.09.2015 FOR THE AS SESSMENT YEAR 2009-2010 PASSED U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1961. ITA NO.2230/MDS/2015 :- 2 -: 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS:- 2 . THE LD.CIT(A) ERRED IN HOLDING THAT THE COMMU NICATION AND TRAVEL EXPENSES ARE NOT INCLUDIBLE AS PART OF EXPORT TURNOVER AND HENCE IT SHOULD BE EXCLUDED FROM THE TOTAL TURNOVER ALSO. 3. IT IS SUBMITTED THAT THE DECISION OF THE SPECIAL BENCH OF THE JURISDICTIONAL ITAT IN THE CASE OF M/S. SAKSOFT LIMITED ON THE SAME ISSUE HAS NOT BECOME FINAL A ND THE DEPARTMENT HAS PREFERRED AN APPEAL U/S.260A . 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE INCURRE D COMMUNICATION EXPENSES OF 929,16,323/- AND TRAVEL EXPENSES OF 921,75,808/- WHICH ARE EXCLUDED FROM THE EXPORT TUR NOVER BUT NOT EXCLUDED FROM TOTAL TURNOVER. ACCORDING TO THE ASSE SSING OFFICER THE EXPENDITURE SHOULD BE EXCLUDED FROM EXPORT TURNOVER WHILE WORKING OUT THE DEDUCTION U/S.10A OF THE ACT. AGAINST THE ABOVE, THE ASSESSEE CONTESTED THE ISSUE IN APPEAL BEFORE THE COMMISSIO NER OF INCOME TAX (APPEALS). 4. THE COMMISSIONER OF INCOME TAX (APPEALS) PLACING RE LIANCE ON THE ORDER OF THE SPECIAL BENCH IN THE CASE OF M /S. SAKSOFT LTD 121 TTJ 865 (SB ) HELD THAT ON THE BASIS OF PARITY PRINCIPLES, WHAT EVER HAS BEEN EXCLUDED FROM EXPORT TURNOVER SHALL ALSO BE EXCLUDE D FROM TOTAL TURNOVER. ACCORDINGLY, THE COMMISSIONER OF INCOME T AX (APPEALS) DIRECTED THE ASSESSING OFFICER TO EXCLUDE THE COMPO NENT OF COMMUNICATION AND TRAVEL EXPENSES FROM EXPORT TURN OVER AS WELL AS ITA NO.2230/MDS/2015 :- 3 -: TOTAL TURNOVER WHILE COMPUTING DEDUCTION U/S.10A OF THE ACT. AGAINST THIS, THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL ON RECORD. ADMITTEDLY, THIS ISSUE WAS CONSIDERED BY T HE SPECIAL BENCH IN THE CASE OF M/S. SAKSOFT LTD (CITED SUPRA) WHEREIN IT WAS HELD THAT EXPENDITURE ON COMMUNICATION AND TRAVEL EXPENSES SH OULD BE EXCLUDED FROM THE EXPORT TURNOVER AS WELL AS TOTAL TURNOVER WHILE COMPUTING DEDUCTION U/S.10A OF THE ACT. BEING SO, I N OUR OPINION THE IMPUGNED ORDER OF THE COMMISSIONER OF INCOME TAX (A PPEALS) DO NOT REQUIRE ANY INTERFERENCE AND WE UPHELD THE SAME AND THE APPEAL OF THE REVENUE IS DISMISSED. 6. IN RESULT, THE APPEAL OF THE REVENUE IN ITA NO.2230/MDS/2015 IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 20TH DAY OF J ANUARY, 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ! ' ) (G. PAVAN KUMAR) /JUDICIAL MEMBER / CHENNAI 0 / DATED: 20.01.2016 KV 1 ) +#-23 43&- / COPY TO: 1 . '( / APPELLANT 3. ! 5- () / CIT(A) 5. 3 89 +#-# / DR 2. +,'( / RESPONDENT 4. ! 5- / CIT 6. 9:% ; / GF