DCIT, CHENNAI V. M/s. Scope International Pvt. Ltd., CHENNAI

ITA 2314/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7884 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 08-08-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , ! ' ! # . $% & '( BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2314/MDS/2016 / ASSESSMENT YEAR:2010-11 THE DY. COMMISSSIONER OF INCOME TAX, CORPORATE CIRCLE 6(1), NEW BLOCK, AAYAKAR BHAVAN, CHENNAI. VS. M/S.SCOPE INTERNATIONAL PVT. LTD., 1 ST FLOOR,EUROPEBUILDING,GRINDLAYS GARDENS, NO.1, HADDOWSROAD,NUNGAMBAKKAM,C HENNAI 600 006. [PAN:AAECS 9043 E] ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : MR. SHIVA SRINIVAS, JCIT /RESPONDENT BY : MR.S.P.CHIDAMBARAM, ADVOCATE / DATE OF HEARING : 08.11.2 0 16 / DATE OF PRONOUNCEMENT : 08 .12. 2016 - / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15, CHENN AI, DATED 24.05.2016 PERTAINING TO ASSESSMENT YEAR 2010-11. ITA NO.2314/MDS/2016 :- 2 -: 2. THE MAIN GRIEVANCE OF THE REVENUE IN ITS APPEAL IS THAT LD.CIT(A) ERRED INDIRECTINGTHE AO TO RECOMPUTED THE DEDUCTION U/S.10A BY EXCLUDING THE EXPENSES OF TELECOMMUNICAT ION CHARGES AN INSURANCE CHARGES FROM THE EXPORT TURNOVER AND TOTA L TURNOVER RELYING UPON THE DECISION OF THE SPECIAL BENCH OF ITAT CHEN NAI IN THE CASE OF M/S.SAK SOFT LTD REPORTED IN (2009) 30 SOT 55(CHENN AI)(SB) AGAINST WHICH THE DEPARTMENT FILED APPEAL U/S.260A BEFORE T HE HONBLE MADRAS HIGH COURT. 3. AFTER HEARING BOTH THE SIDES AND PERUSING THE M ATERIALS ON RECORD, IT APPEARS THAT THE LD. ASSESSING OFFICER W AS OF THE VIEW THAT SINCE THE REVENUE WAS ON APPEAL AGAINST THE DECISIO N OF THE CHENNAI SPECIAL BENCH IN THE CASE OF SAK SOFT LTD., (SUPRA) BEFORE THE HONBLE MADRAS HIGH COURT, HE NEED NOT FOLLOW THAT DECISION . FURTHER, IT IS NOT THE CASE OF THE REVENUE THAT THE JUDGMENT OF THE CH ENNAI SPECIAL BENCH IN THE CASE OF SAK SOFT LTD., (SURPA) IS STAY ED BY THE MADRAS HIGH COURT. IT IS PERTINENT TO MENTION THAT IN THE ABSENCE OF ANY STAY GRANTED BY THE BY THE HONBLE MADRAS HIGH COURT AGA INST THE OPERATION OF THE JUDGMENT OF THE CHENNAI SPECIAL BENCH IN THE CASE OF SAK SOFT LTD., (SURPA), ALL THE LOWER JUDICIARIES BEING QUAS I JUDICIAL AUTHORITIES ARE BOUND TO FOLLOW THE DECISION OF THE CHENNAI SPE CIAL BENCH IN THE CASE OF SAK SOFT LTD., (SURPA). SINCE THE LD.CIT( A) HAS RIGHTLY FOLLOWED THE DECISION OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR ITA NO.2314/MDS/2016 :- 3 -: ASSESSMENT YEARS 2005-06, 2006-07 & 2008-09 WHEREIN THE TRIBUNAL DIRECTED THE AO TO EXCLUDE COMMUNICATION CHARGES FR OM TOTAL TURNOVER WHILE COMPUTING DEDUCTION U/S.10A OF THE ACT BY FOL LOWING THE DECISION OF CHENNAI SPECIAL BENCH CITED SUPRA, WE DO NOT FIN D ANY INFIRMITY IN THE ORDER OF THE LD.CIT(A). 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH DECEMBER, 2016, AT CHENNAI. SD/ - SD/ - ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) & / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER () / CHENNAI *+ / DATED: 08 TH DECEMBER, 2016 K S SUNDARAM +,-- ./-0/ / COPY TO: - 1 . / APPELLANT 3. - 1-!' / CIT(A) 5. /23- 4 / DR 2. / RESPONDENT 4. - 1 / CIT 6. 3&-5 / GF