Assistant Commissioner of Income TAx Circle-4(1)(2), Bangalore V. M/s Mcafee Software India Pvt Ltd , Bangalore

ITA 2555/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5458 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 30-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K R VASUDEVAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. JASON P BOAZ, ACCOUNTANT MEMBER ITA NO.2555/BANG/2017 ASSESSMENT YEAR : 2010-11 THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE -4(1)(2), BANGALORE, ROOM NO. 230, 2 ND FLOOR, BMTC BUILDING, 80 FEET ROAD, 6 TH BLOCK, KORAMANGALA, BENGALURU 560 095. VS. M/S. MCAFEE SOFTWARE (INDIA) PVT. LTD., EMBASSY GOLF LINKS BUSINESS PARK, PINE VALLEY, 2 ND FLOOR, I.R.R.ROAD, BENGALURU 560 071. PAN : AABCN 3175 H APPELLANT RESPONDENT REVENUE BY : DR. P. V. PRADEEP KUMAR, ADDITIONAL CIT ASSESSEE BY : SHRI. K. R. VASUDEVAN, ADVOCATE DATE OF HEARING : 01.03.2018 DATE OF PRONOUNCEMENT : 14.03.2018 O R D E R PER SUNIL KUMAR YADAV, JM : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A), INTER ALIA, ON FOLLOWING GROUNDS: 1. THE ORDER OF THE LD.CIT (A) IS OPPOSED TO THE LAW AND FACTS OF THE CASE. 2. THE CIT (A) WAS NOT JUSTIFIED IN DIRECTING THE AO TO RECOMPUTE THE DEDUCTION ALLOWABLE U/S 1OA OF THE ACT AFTER REDUCING EXPENDITURE INCURRED IN FOREIGN CURRENCY TOWARDS TELECOMMUNICATION EXPENSES & FOREIGN TRAVEL EXPENSES FROM THE EXPORT TURNOVER. 3. THE LD.CIT (A) OUGHT TO HAVE APPRECIATED THAT THERE IS NO PROVISION IN SEC.1OA WHICH REQUIRES THE CONCERNED EXPENSES, WHICH ARE REQUIRED TO BE REDUCED FROM THE EXPORT TURNOVER AS PER CLAUSE (IV) OF THE EXPLANATION TO SECTION 1OA TO BE REDUCED FROM THE TOTAL ITA NO. 2555/BANG/2017 PAGE 2 OF 2 TURNOVER ALSO. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT (A) HAS ERRED IN DIRECTING TO FOLLOW THE RATIO LAID DOWN BY THE HON'BLE HG IN THE CASE OF CIT VS. TATA ELXSI LTD WHILE COMPUTING THE DEDUCTION U/S 10A, WHEN THE DEPARTMENT HAS FILED A SLP BEFORE THE HON'BLE SC ON THIS ISSUE WHICH IS PENDING ADJUDICATION. 5. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT (A) IN SO FAR AS IT IS RELATES TO TIME ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED THAT CIT(A) HAS ADJUDICATED THE ISSUE FOLLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD., 349 ITR 98 IN WHICH IT HAS BEEN HELD THAT WHEREVER ANY EXPENDITURE IS EXCLUDED FROM THE EXPORT TURNOVER, IT SHOULD ALSO BE EXCLUDED FROM THE TOTAL TURNOVER. SINCE THE CIT(A) HAS ADJUDICATED THE ISSUE FOLLOWING THE JUDGMENT OF JURISDICTIONAL HIGH COURT, WE FIND NO INFIRMITY IN HIS ORDER. ACCORDINGLY, WE CONFIRM THE SAME. 3. IN THE RESULT, APPEAL OF THE REVENUE STANDS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 14 TH MARCH, 2018. SD/- SD/- (JASON P BOAZ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE. DATED: 14 TH MARCH, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. DR 4. CIT 5. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE.