ACIT, CHENNAI V. M/s. Solverminds Solutions Technologies Pvt. Ltd., CHENNAI

ITA 378/CHNY/2011

• Counselvise Citation: 37821714 RSA 2011
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-08-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 02-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGIRI J
• Assessee Lawyers: K MEENATCHI SUNDARAM
• Section: 143(3); 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO.378/MDS/2011 (ASSESSMENT YEAR : 2007-08 ) THE ACIT COMPANY CIRCLE VI(3) CHENNAI VS M/S SOLVERMINDS SOLUTIONS TECHNOLOGIES PVT. LTD NO.97, BLOCK NO.A1 SIDCO INDL. ESTATE CHENNAI - 49 [PAN AAICS1132M] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N.BETGIRI, JCIT/DR RESPONDENT BY : SHRI K.MEENATCHI SUNDARAM, CA DATE OF HEARING : 23.08.2011 DATE OF PRONOUNCEMENT : 23.08.2011 O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE, FOR ASSESSMENT YE AR 2007-08, IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), DATED 16.11.2010, AND ARISES OUT OF THE ORDER OF THE ASSESSING OFFICER PA SSED U/S 143(3) ON 20.11.2009. ITA 378/11 :- 2 -: 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS REGARDIN G TREATMENT OF THE EXPENSES OF RS.27.49 LAKHS INCUR RED BY THE ASSESSEE IN FOREIGN EXCHANGE WHICH THE LD. CIT(A) HAS DIRECT ED TO EXCLUDE BOTH FROM THE EXPORT TURNOVER AND TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10B OF THE ACT. IN FACT, THIS ISSUE STANDS COVERED BY THE ORDER OF THE TRIBUNAL IN FAVO UR OF THE ASSESSEE AND THE LD. CIT(A) HAS TAKEN THIS DECISION AFTER FO LLOWING THE TRIBUNAL ORDER ONLY. THE ONLY DISPUTE OF THE REVENUE IS THA T THE TRIBUNAL ORDER PASSED IN THE CASE OF ITO VS SAK SOFT LTD, 30 SOT 55(CHENNAI) (SPECIAL BENCH), HAS NOT BECOME FINAL AS THE REVENU E HAS PREFERRED APPEAL BEFORE THE HON'BLE HIGH COURT. 3. AFTER GOING THROUGH THE TRIBUNAL ORDER AND THE FACT S AVAILABLE ON RECORD, WE ARE CONVINCED THAT THE ISSU E INVOLVED IN THIS APPEAL STANDS SQUARELY COVERED BY THE ABOVE DECISIO N OF THE SPECIAL BENCH, CHENNAI. THE REVENUE HAS NOT DISPUTED THIS FACT THAT THE ISSUE INVOLVED IN THIS APPEAL IS SQUARELY COVERED BY THE ABOVE MENTIONED TRIBUNAL ORDER, BUT THE ONLY GRIEVANCE IS THAT THEY HAVE PREFERRED APPEAL AGAINST THE TRIBUNAL ORDER(SUPRA), HENCE, IT HAS NOT BECOME FINAL. BE THAT AS IT MAY, AS ON TODAY, THE PRECEDE NT OF THE CHENNAI BENCHES IS AVAILABLE WHICH HAS TO BE RESPECTFULLY F OLLOWED AND IN THE EVENTUALITY OF ITS BEING OVERRULED BY THE HON'BLE H IGH COURT, THE LAW ITA 378/11 :- 3 -: WILL TAKE ITS OWN COURSE. ACCORDINGLY, WE HAVE TO DISMISS THIS APPEAL OF THE REVENUE BEING DEVOID OF ANY MERITS. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED ORDER PRONOUNCED IN THE OPEN COURT ON 23.8.2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 23 RD AUGUST, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR