Exxova Solutions (India) Pvt.Ltd., Hyd, Hyderabad V. ACIT, Cirlce-2(2), Hyd, Hyderabad

ITA 330/HYD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2563 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 18-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Additional evidence
• Section: 143(3); 92E; 144

Judgement Text

ITA NO 330 OF 2016 EXXOVA SOLUTIONS INDIA P LTD HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.330/HYD/2016 (ASSESSMENT YEAR: 2011-12) M/S. EXXOVA SOLUTIONS (INDIA) PRIVATE LIMITED HYDERABAD PAN: AADCR 0499 L VS INCOME TAX OFFICER WARD 2(1) HYDERABAD FOR ASSESSEE : SHRI P. MURALI MOHAN RAO FOR REVENUE : SMT. SUMAN MALIK, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2011-12. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY WHICH IS ENGAGED IN THE BUSINESS OF DISTRIBUTION OF ELECTRONIC GOODS AND SOFTWARE DEVELOPMENT. IT FILED ITS RETURN OF INCOME FOR THE A.Y 2011-12 ON 30.09.2011 ADMITTING TAXABLE INCO ME OF RS.1,57,07,000. DURING THE ASSESSMENT PROCEEDINGS U /S 143(3) OF THE ACT, THE ASSESSEE WAS DIRECTED TO FURNISH CERTA IN INFORMATION. NONE APPEARED FOR THE ASSESSEE AND THEREFORE, THE A SSESSMENT WAS COMPLETED U/S 144 OF THE ACT. WHILE CONSIDERING THE CLAIM OF DEDUCTION U/S 10A OF THE ACT, THE AO OBSERVED THAT THE ASSESSEE HAS FAILED TO PRODUCE NECESSARY EVIDENCE SUCH AS ( A) REPORT OF AN ACCOUNTANT U/S 92E IN FORM 3CEB; (B) FORM 56F; (C) FO REIGN DATE OF HEARING : 24.04.2017 DATE OF PRONOUNCEMENT : 26.04.2017 ITA NO 330 OF 2016 EXXOVA SOLUTIONS INDIA P LTD HYDERABAD PAGE 2 OF 3 EXCHANGE INWARD REMITTANCE CERTIFICATE AND (D) STPI REGISTRATION AND SOFTEX FORM. THEREFORE, THE AO DISALLOWED THE DE DUCTION U/S 10A AND BROUGHT IT TO TAX. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) BUT DID NOT FILE ANY DETA ILS BEFORE HIM OBSERVING THAT THE ASSESSEE HAS NOT FULFILLED THE M ANDATORY REQUIREMENT FOR CLAIMING THE DEDUCTION U/S 10A OF T HE ACT BY NOT PRODUCING THE RELEVANT DOCUMENTS, THE CIT (A) CONFI RMED THE DISALLOWANCE OF DEDUCTION U/S 10A OF THE ACT. AGGRI EVED, THE ASSESSEE IS IN SECOND APPEAL BEFORE BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT (A)-5 HYDERABAD IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED CIT (A) ERRED IN UPHOLDING THE DISALLOWANCE OF CLAIM OF DEDUCTION MADE U/S 10A WITHOUT CONSIDERING THE FACTS OF THE CASE. 3. THE LEARNED CIT (A) OUGHT TO HAVE APPRECIATED THE FACT THAT THE ASSESSEE IS IN POSSESSION OF COMPLETE INFORMATION REGARDING CLAIM MADE U/S 10A . 3. IN SUPPORT OF THE ASSESSEES CONTENTION THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 10A OF THE A CT, THE ASSESSEE HAS FILED THE RELEVANT DOCUMENTS AS ADDITIONAL EVID ENCE BEFORE US. THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED THAT TH E TRIBUNAL MAY NOW SET ASIDE THE ISSUE TO THE FILE OF THE AO F OR CONSIDERATION IN ACCORDANCE WITH LAW AFTER TAKING INTO CONSIDERAT ION THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE. 4. THE LEARNED DR HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. ITA NO 330 OF 2016 EXXOVA SOLUTIONS INDIA P LTD HYDERABAD PAGE 3 OF 3 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAVE FILED ALL THE RELEVANT DOCUMENTS AS ADDITIONAL EVIDENCE BEFORE US. IT IS N OT THE CASE OF THE REVENUE THAT THE ASSESSEE IS NOT ELIGIBLE OR TH AT IT IS NOT CARRYING ON THE ACTIVITY WHICH IS ELIGIBLE FOR DEDU CTION U/S 10A OF THE ACT BUT THE DISALLOWANCE IS ONLY BECAUSE THE AS SESSEE HAS NOT FILED THE RELEVANT DOCUMENTS. SINCE THE ASSESSEE HA S NOW FILED ALL THE RELEVANT DOCUMENTS, WE ARE INCLINED TO ADMIT TH E ADDITIONAL EVIDENCE AND REMAND THE ISSUE TO THE FILE OF THE AO FOR VERIFICATION AND CONSIDERATION IN ACCORDANCE WITH LAW. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2017. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEM BER HYDERABAD, DATED 26 TH APRIL, 2017. VINODAN/SPS COPY TO: 1 P. MURALI & CO. CAS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500082 2 INCOME TAX OFFICER WARD 2(1) HYDERABAD 3 CIT (A)-5 HYDERABAD 4 PR. CIT 5 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER