M/s HCL EAI Services Ltd., Bangalore V. ACIT, Bangalore

ITA 281/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57516 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 07-03-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 16-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K AMBASTHA CITI
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Revision of order
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI N BARATHVAJA SANKAR, VICE RESIDENT AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.281/B ANG/2011 (ASST. YEAR - 2006-07) M/S HCL EAI SERVICES LTD., NO.6, A.S CHAMBERS, 80 FT. ROAD, 6 TH BLOCK, KORAMANGALA, BANGALORE-560 095. . APPELLANT. PAN NO.AACCA4040P. VS. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-11(4), BANGALORE. . RESPONDENT APPELLANT BY : SHRI R VIJAYA RAGHAVAN, ADVOCATE RESPONDENT BY : SHRI S.K AMBASTHA, CIT-I DATE OF HEARING : 07-03-2012 DATE OF PRONOUNCEMENT : 07-03-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX I AT BANGALORE ITA NO.281/B/11 2 DATED 13.1.2011. THE APPEAL ARISES OUT OF THE ORDE R U/S 263 OF THE INCOME-TAX ACT, 1961. 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT IN ASSUMING JURISDICTION U/S 263 OF THE INCOME-TAX ACT AND DIRECTING THE AO TO COMPLETE THE ASSESSMENT BY EXCLUDING FORE IGN CURRENCY EXPENSES OF RS.3.89 CROES INCURRED IN CONNECTION WI TH DEVELOPMENT OF SOFTWARE FROM EXPORT TURNOVER FOR THE PURPOSES OF C OMPUTATION OF DEDUCTION U/S 10A OF THE INCOME-TAX ACT. 3. THE ASSESSEE HAS RAISED AS MANY AS 10 GROUNDS OF APPEAL AND HAS ALSO RAISED AN ADDITIONAL GROUND WHICH IS ALTER NATIVE TO THE MAIN GROUNDS OF APPEAL. THE ADDITIONAL GROUND IS THAT I F THE EXPENSES IN FOREIGN CURRENCY ARE TO BE EXCLUDED FROM THE EXPORT TURNOVER THEN THE SAME SHOULD ALSO BE EXCLUDED FROM THE TOTAL TURNOVE R FOR THE PURPOSES OF COMPUTING DEDUCTION U/S 10A OF THE INCOME-TAX AC T. 4. THE LEARNED COUNSEL FOR THE ASSESSEE R VIJAYA RA GHAVAN SUBMITTED THAT THE ALTERNATIVE AND ADDITIONAL GROU ND OF APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. TA TA ELXSI LTD. & ITA NO.281/B/11 3 OTHERS (2011-TIOL-684-HC-KAR-II, WHEREIN IT HAS BEE N HELD THAT WHEN CERTAIN EXPENDITURE IS EXCLUDED FROM THE EXPO RT TURNOVER, THEN THE SAID EXPENDITURE SHOULD ALSO BE EXCLUDED FROM T HE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 10A OF T HE INCOME-TAX ACT. 5. THE LEARNED DR HOWEVER SUPPORTED THE ORDER OF T HE CIT(A). 6. HAVING HEARD BOTH THE PARTIES AND HAVING CONSID ERED THE RIVAL CONTENTIONS, WE FIND THAT THE ISSUE RAISED IN THE A DDITIONAL GROUND OF APPEAL WHICH IS ALSO AN ALTERNATIVE GROUND IS COVER ED BY THE DECISION OF TATA ELXSI LTD. & OTHERS (CITED SUPRA). 7. IN VIEW OF THE SAME, WE ARE INCLINED TO REJEC T THE MAIN GROUNDS OF APPEAL AND ACCEPT THE ADDITIONAL GROUNDS OF APP EAL AND ALLOW THE SAME IN THE LIGHT OF THE DECISION OF THE HONBLE JU RISDICTIONAL HIGH COURT. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ITA NO.281/B/11 4 ORDER PRONOUNCED IN THE OPEN COURT ON 7TH MAR, 2012. SD/- SD/- (N BARATHVAJA SANKAR) (P MADHAVI DEVI) VICE PRESIDENT JUDICIAL MEMBER VMS. BANGALORE DATED : 7/3/2012 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR, I TAT, BANGALORE.