Income Tax Officer, Ward-1(1)(2), Bengaluru V. M/s. Ariba Technologies India Pvt. Ltd, Bengaluru

ITA 2668/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4855 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Assessee Lawyers: UMASHANKAR GAUTAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE S HRI N.V. VASUDEVAN , JUDICIAL MEMBER AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER I.T . A. NO. 2668 /BANG/20 17 (ASSESSMENT YEAR : 20 05 - 06 ) INCOME TAX OFFICER, WARD 1(1)(2), BANGALORE. . APPELLANT. VS. M/S. ARIBA TECHNOLOGIES INDIA PVT. LTD., NO.65/2, LAUREL C BLOCK, RMZ ICON, NO.51, PALACE ROAD, BANGALORE - 560 052 . .. RE SPONDENT. APPELLANT BY : SHRI B.R. RAMESH, JCIT (D.R) R E SPONDENT BY : SHRI UMA SHANKAR GAUTAM, ADVOCATE. DATE OF H EARING : 9.4.2018. DATE OF P RONOUNCEMENT : 12 .4 .201 8 . O R D E R PER SHRI JASON P BOAZ A .M . : T H I S A P P E A L B Y RE V E N U E I S D I R E C T E D A G A I N S T T H E O R D E R O F T H E CI T ( A ) - 1 , B A NG A L O RE D A T ED 31.07.2017 F O R A SS E SS M E N T Y EAR 2 00 5 - 06 . 2 . BR I E F L Y ST A T E D , T H E F A C T S O F T H E C A S E A R E AS U N D ER : - 2 ITA NO.2668/BANG/2017 2 .1 T H E A S S E S S EE, A C O M P A N Y E NG A G E D I N T H E B US IN E S S O F P R OV I DIN G SOFTWARE DEVELOPMENT SERVICES, F I L E D IT S R E T U RN O F I N C O M E F O R A SS E S S M E N T Y EAR 2 0 0 5 - 06 O N 30. 10 . 2 0 0 5 D EC L A R I N G TO T AL I N C O M E O F R S . 50,070 A F T E R, I NT E R A L I A, C L A I M I N G D E D U C TI O N U/ S . 1 0 A O F T H E I N C O M E T AX A C T , 1 96 1 ( I N S HO R T T H E A C T ). T H E C A S E W A S T A K E N U P F O R S C R U TI N Y A N D TH E A S S E S S M E N T W AS C O M PL E T E D U / S . 14 3 ( 3 ) O F TH E A C T V I D E O R D ER D A T E D 2 6 .12.20 08 W H ER E I N T H E A SS E S S EE S IN C O M E W AS D E T ER M IN E D A T R S . 1 ,41,91,817 I N VI EW O F, I NT E R A L I A, TH E A S S E S S IN G O F F I CER ( A O ) D I S A L L O WIN G T H E A S S E S S EE S E X C E S S C L A I M F O R D E D U C T IO N U / S . 1 0 A O F T H E A CT AND MAKING A T.P. ADJUSTMENT OF RS.1,39,96,932 UNDER SECTION 92CA OF THE ACT. ON APPEAL, T H E C I T ( A ) - 1 , BA N G A LO R E P A R T L Y A L L O W ED T H E A SS E S S EE S A P P E A L VI D E O R D ER D A T ED 31.07.2017 . I N D O IN G S O , T H E L D . CI T ( A ) A L L O W E D T H E A S S E S S EE S C L A I M F O R D E D U C T IO N U/ S . 1 0 A O F T H E A CT F O LL O WI N G T H E D E C I S IO N O F T H E H ON B L E K A R N A T A K A H I G H C O U RT I N T H E C A S E O F CIT V T A T A EL X S I L T D . ( 3 4 9 I T R 98 ) ( K A R ). 3 .1 A GG R I E V E D B Y TH E O R D ER O F T H E CI T ( A ) - 1 , BA N G A L O RE D A T E D 31.07.2017 F O R AS S E SS M E N T Y EAR 2 00 5 - 06 , RE V E N U E H AS F I L E D T H I S A P P E A L , RA I S IN G T H E F O L LO W I N G G R OU N D S : - 3 ITA NO.2668/BANG/2017 3.2 T H E L D . D R W AS H E ARD I N S U P P O R T O F T H E G R O U ND S RA I S E D . 3 .3 W E H A V E H EA R D TH E R I V AL C ON T E N T I ON S A N D P E R US E D A N D CA R EF ULL Y C O N S I D ER E D T H E M A T E R I A L O N RE C O R D ; IN C L U D I N G TH E J U D I C I A L P R ON O U N C E M E N T C I T E D . A S R E G A R D S T H E I S SU E O F R E D U C T IO N O F T H E IT E M S O F FOREIGN TRAVEL E X P E N DI TU R E I N C U RR E D I N F O R E I G N C U RR E N CY FOR RENDERING OF T E C H N I C A L S E R VI C ES O U TS ID E I NDI A, T H E J U R I S D I C T I O N AL H I G H C O U RT O F K A R N A T A K A I N TH E C A S E O F CIT V T A T A EL X S I L T D ( 3 4 9 I T R 98 ) ( K AR) H AS H E L D T H A T W H EN CE R T A I N E X P E NS ES ARE E X C LU D ED F R O M TH E E X P O R T T U R NO V ER F O R TH E PU R P O S ES O F C O M PU TI N G D E DU C T I O N A D M ISS I BL E U N D E R T H E A C T ; L I K E U / S . 10 A O F T H E A C T , S U C H E X P E N S ES ARE A L S O T O B E E X C L U D ED F R O M TO T AL TU R N O V ER, A S E X P O RT TU R N O V ER I S A P A R T O F T O T AL T U R NO V ER. T H E D EC I S IO N I N TH E C A S E O F T A T A EL X S I LT D ( S U P R A ) H AS A L S O B E E N F O LL O W ED B Y T H E H ON B L E C O U RT I N IT S O R D ER I N T H E C A S E O F D CIT V M O T O R I ND U ST R I E S C O . L TD ., (I T A N O . 7 7 6 /2 0 0 6 , 7 4 4/ 2 00 7 A N D 1 1 55 / 20 0 6 D A T ED 13 . 0 6 . 2 0 1 4 ), H OL D I N G T H AT I F A N Y E X P E N D IT U RE I S S O UG H T T O B E RE M OV ED F R O M E X PO R T TU R N O V ER, TH E N I T S HO U L D A L S O B E R E D U C E D FR O M TO T AL T U R N O V ER F O R T H E PU R P O S ES O F C O M PU TI N G TH E E L I G I B L E D E D U C T I O N U / S . 1 0 A O F T H E A C T . IN T H I S L E G A L A N D F A C T U A L M A T R I X O F T H E CA S E, A S D I S C U S S ED A B O V E, W E F I N D N O RE A S O N T O I N T ERFERE W I T H O R 4 ITA NO.2668/BANG/2017 D E V I A T E FR O M T H E F IN D I N G R E N D ER E D B Y T H E LD . CI T ( A ) O N TH I S IS SU E, A N D TH ER EF O RE U PH O L D T H E S A M E . C O NS E Q U E N T L Y , TH E G R O UN D S S. NO S . 1 T O 4 R A IS E D B Y RE V E N U E A R E D I S M ISS E D . 4. IN THE RESULT, REVENUE S APPEAL FOR ASSESSMENT YEAR 2005 - 06 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH APRIL, 2018. SD/ - ( N.V. VASUDEVAN ) JUDICIAL MEMBER SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER BANGALORE, DT. 12 .04.2018. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.