DCIT, Cir-1(3), Hyderabad V. M/s. BA Continuum India Pvt.Ltd, Hyderabad

ITA 412/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59206 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 15-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K MYTHILI RANI
• Assessee Lawyers: TA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE CHANDRA POOJARI, ACCOUNTANT MEMBER & SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 412/HYD/2011 ASSESSMENT YEAR 2006-07 THE ACIT, CIRCLE 1(3), HYDERABAD VS M/S B A CONTIN UUM INDIA P LTD. HYDERABAD (PAN ACVPG9050D) APPELLANT RESPONDENT APPELLANT BY : SMT.K. MYTHILI RANI RESPONDENT BY : SHRI TAPAN GUPTA DATE OF HEARING : 23.1.2012 DATE OF PRONOUNCEMENT : ORDER PER ASHA VIJAYARAGHAVAN, JM . THIS APPEAL PREFERRED BY THE REVENUE IS D IRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-19, MUMBAI, DATED 1 6.12.2010 AND PERTAINS TO THE ASSESSMENT YEAR 2006-07. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS: 1. THE ORDER OF THE CIT(A) IS ERRONEOUS ON THE FAC T AND IN THE CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) ERRED IN DIRECTING THE ASSESSING OFFI CER TO EXCLUDE COMMUNICATION CHARGES FROM TOTAL TURNOVER, THE CASE LAWS ON WHICH HE RELIED UPON HAVE NOT BECOME F INAL AND THE MATTER IS IN APPEAL BEFORE THE HIGH COURT. ITA NO.412/HYD/2011 BA CONTINUUM SOLUTIONS LTD., HYDERABAD 2 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET, SUBMITTED THAT THE ISSUE OF EXCLUSION OF COMMUNICAT ION CHARGES FROM THE TOTAL TURNOVER OF THE ASSESSEE FOR THE PUR POSE OF COMPUTATION OF DEDUCTION U/S 10A OF THE ACT IS COVE RED IN FAVOUR OF THE ASSESSEE WITH SERIES OF DECISIONS OF THE VAR IOUS HIGH COURTS AND THE TRIBUNAL AND ALSO IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2005-06. A LIST OF WHICH WAS FILED BEFORE THE TRIBUNAL. THE DR ON THE OTHER HAND, HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIO NS. WE FIND THAT THE ISSUE OF EXCLUSION OF COMMUNICATION CHARGE S FROM THE TOTAL TURNOVER OF THE ASSESSEE FOR THE PURPOSE OF C OMPUTATION OF DEDUCTION U/S 10A OF THE ACT IS COVERED IN FAVOUR O F THE ASSESSEE WITH SERIES OF DECISIONS OF THE HIGH COURTS AND TRI BUNAL, INCLUDING THE SPECIAL BENCH OF THE TRIBUNAL IN ITO VS. SAK SOFT LTD. (313 ITR (AT) 353), DECISIONS OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ITO VS. DE BLOCK INDIA SOFTWARE (P) LTD . (ITA NO.983 & 984/HYD/2006 DATED 31.1.2007) AND IN DY.CIT V/S M ENTOR GRAPHICS (I) PRIVATE LIMITED (ITA NO.696/H/2009, AN D DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN DCIT VS. BINA RY SEMATICS LIMITED (109 TTJ 556). 5. WE FIND THAT THE ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL DATED 28 TH JULY, 2011 IN ASSESSEES OWN CASE IN ITA NO.1065/HYD/2011 FOR THE ASSESSMENT YEAR 2005-06. 4. HENCE, WE ARE OF THE OPINION THAT THERE IS NO MISTAKE IN THE ORDER OF THE CIT(A) IN DECIDING THE ISSUE IN FA VOUR OF THE ASSESSEE FOLLOWING THE SPECIAL BENCH DECISION IN IT O VS. SAK SOFT (313 ITR (AT) 353). ITA NO.412/HYD/2011 BA CONTINUUM SOLUTIONS LTD., HYDERABAD 3 5. IN THE RESULT, THE APPEAL OF THE REVENUE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON : 25.1.2012 SD/- SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER DATED THE JANUARY, 2012 COPY FORWARDED TO: 1. THE DCIT, CIRCLE 1(3), HYDERABAD 2. M/S B A CONTINUUM INDIA P LTD., BUILDING NO.5, MIND SPACEN, RAHEJA IT PARK, HITECH CITY, MADHAPUR, HYDERABAD-81. 3. THE CIT(A)-19, MUMBAI 4. THE CIT, HYDERABAD 5. THE DR, ITAT, HYDERABAD NP/