ACIT, Bangalore V. M/s Zenith Software Limited, Bangalore

ITA 340/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57460 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 31-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN THOMAS JOSE
• Assessee Lawyers: V SRINIVASAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.340/B ANG/2011 (ASST. YEAR - 2007-08) THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-12(5), BANGALORE. . APPELLANT VS. M/S ZENITH SOFTWARE LTD., #4, INDL. LAYOUT, KORAMANGALA, BANGALORE-560 093. . RESPONDENT PAN NO.AAACZ0453D. APPELLANT BY : SHRI SUSAN THOMAS JOSE RESPONDENT BY : SHRI V SRINIVASAN DATE OF HEARING : 30-01-2012 DATE OF PRONOUNCEMENT : 30-01-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE REVENUE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) III ITA NO.340/B/11 2 AT BANGALORE DATED 6.12.2010. THE APPEAL ARISES OU T OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: I) THE ORDER OF THE LEARNED CIT(A) HAS ERRED IN LAW IN DIRECTING THE AO TO EXCLUDE COMMUNICATION AND TRAVEL EXPENSES INCURRED IN FOREIGN CURRENCY OF RS.1,69,68,481/- FROM TOTAL TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTION U/S 10A OF THE I.T ACT, 1961. II) 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 RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 3. THOUGH THE LEARNED DR STRONGLY SUPPORTED THE ORD ER OF THE AO, WE FIND THAT THIS ISSUE IS NOW COVERED BY THE DECIS ION OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. & OTHERS (2011- TIOL-684-HC-KAR-II, WHEREIN IT HAS BEEN HELD THAT W HEN CERTAIN EXPENDITURE IS REDUCED FROM THE EXPORT TURNOVER, TH EN THE SAME HAS TO BE REDUCED FROM THE TOTAL TURNOVER ALSO IN COMPUTIN G DEDUCTION U/S ITA NO.340/B/11 3 10A OF THE INCOME-TAX ACT. IN VIEW OF THE SAME, TH E REVENUES APPEAL IS DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30TH JAN, 2012. SD/- SD/- (N.K SAINI) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER VMS. BANGALORE DATED : 30/01/2012 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.