Deputy Commissioner of Income-Tax, Bangalore V. M/s Subex Ltd, Bangalore

ITA 416/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7422 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 21-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMER SINGH MEENA
• Assessee Lawyers: TATA KRISHNAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.416/BANG/2017 ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 6(1)(2), BANGALORE. VS. M/S. SUBEX LTD., ADARSH TECH PARK, DEVARABISANAHALLI, OUTER RING ROAD, BANGALORE 560 037. PAN: AABCS 9255R APPELLANT RESPONDENT APPELLANT BY : SHRI SUMER SINGH MEENA, ADDL. CIT(DR) RESPONDENT BY : SHRI TATA KRISHNAN, ADVOCATE DATE OF HEARING : 12.10.2017 DATE OF PRONOUNCEMENT : 31.10.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS IS AN APPEAL PREFERRED BY THE REVENUE AGAI NST THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1. THE ORDER OF THE CIT (APPEALS) IS OPPOSED TO L AW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN CITING THE RATIO LAID DOWN BY THE HON'BLE HIGH COURT IN THE CASE OF CIT VS TATA ELXSI LTD. REPORTED IN 349 ITR 98 AND DIRECTING THE AO TO REDUCE EXPENSES INCURRED IN FOR EIGN CURRENCY, BOTH FROM EXPORT TURNOVER AS WELL AS FROM TOTAL TUR NOVER FOR ITA NO.416/BANG/2017 PAGE 2 OF 3 THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10A, WI THOUT APPRECIATING THE FACT THAT THE STATUTE ALLOWS EXCLU SION OF SUCH EXPENDITURE ONLY FROM EXPORT TURNOVER BY WAY OF A S PECIFIC DEFINITION FOR EXPORT TURNOVER IN THE ACT. ON THE O THER HAND, THERE IS NO SPECIFIC PROVISION IN SECTION 10A WARRA NTING EXCLUSION OF THE ABOVE EXPENSES FROM THE TOTAL TURN OVER ALSO. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE UR GED AT THE TIME OF HEARING, IT IS HUMBLY 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 BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL. 2. THE LD. DR IN SUPPORT OF THE GROUNDS RAISED HAS SUBMITTED THAT SINCE THE SLP HAS BEEN FILED IN THE HONBLE SUPREME COURT, THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF TATA ELXSI LTD., 349 ITR 98 SHOULD NOT BE FOLLOWED. THE LD. COUNSEL FOR THE AS SESSEE, ON THE OTHER HAND, HAS CONTENDED THAT THE OPERATION OF THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT HAS NOT BEEN STAY ED BY THE HONBLE SUPREME COURT, THEREFORE, THE TRIBUNAL IS SUPPOSED TO FOLLOW THE JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT. 3. HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWE R AUTHORITIES, WE FIND THAT SO LONG AS THE JUDGMENT OF HON'BLE JURISD ICTIONAL HIGH COURT HOLDS THE FIELD, ALL SUBORDINATE AUTHORITIES ARE SUPPOSED TO FOLLOW THE SAME. THEREFORE, WE FIND NO INFIRMITY IN THE ORDER OF CIT (APPEALS), WHO HAS ADJUDICATED THE ISSUE FOLLOWING THE JUDGMENT OF THE HON'BLE JURISDICTIONAL ITA NO.416/BANG/2017 PAGE 3 OF 3 HIGH COURT IN THE CASE OF TATA ELXSI LTD. (SUPRA) . WE ACCORDINGLY CONFIRM HIS ORDER. 4. IN THE RESULT, THE APPEAL BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF OCTOBER, 2017. SD/- SD/- ( A.K. GARODIA ) ( SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 31 ST OCTOBER, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.