Asst.C.I.T., Bangalore V. M/s Mcafee Software (India) Pvt. Ltd., Bangalore

ITA 422/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5566 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 11-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K P VASUDEVAN

Judgement Text

IT(TP)A.422/BANG/2016 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU SHRI. VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T(TP).A NO.422/BANG/2016 (ASSESSMENT YEAR : 2011-12) ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -4(1)(2), BENGALURU .. APPELLANT V. M/S. MCAFEE SOFTWARE (INDIA) P. LTD, EMBASSY GOLD LINK BUSINESS PARK, PINE VALLEY, 2 ND FLOOR, OFF INDIRANAGAR INTERMEDIATE RING ROAD, BENGALURU 560 071 .. RESPONDENT PAN : AABCN3175H ASSESSEE BY : SHRI. K. P. VASUDEVAN, ADVOCATE REVENUE BY : SMT. NEERA MALHOTRA, CIT-DR HEARD ON : 21.02.2017 PRONOUNCED ON : 07.04.2017 O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE ACIT, DT.28.01.2016, PASSED U/S.143(3) R.W.S.144C(13) OF THE ACT, IN PURSUANCE TO THE DIRECTIONS OF THE DRP, DT.01.12.2015, , FOR THE ASSESSMENT YEAR 2010-11. 02. IN THIS APPEAL, THE GRIEVANCE OF THE REVENUE IS THAT THE DRP DIRECTED THE AO TO EXCLUDE BOTH FROM EXPORT TURNOVER AS WELL AS THE TOTAL TURNOVER IT(TP)A.422/BANG/2016 PAGE - 2 EXPENSES LIKE TELECOMMUNICATION CHARGES AND TRAVELL ING EXPENSES OF RS.5,33,47,824/- AND RS.4,93,45,041/-, RESPECTIVELY , INCURRED IN FOREIGN CURRENCY, WHEN THE AO DEDUCTED THEM FROM THE EXPORT TURNOVER ALONE FOR WORKING OUT THE DEDUCTION U/S.10A OF THE ACT. 03. WE FIND THAT THE DRP HAD FOLLOWED THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD V. CIT [349 ITR 98], IN DIRECTING EXCLUSION OF ITEMS DEDUCTED FROM EXPORT T URNOVER AND FROM TOTAL TURNOVER ALSO FOR WORKING OUT THE DEDUCTION U/S.10A OF THE ACT. JUST FOR A REASON THAT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE JUDGMENT OF JURISDICTIONAL HIGH COURT, WOULD NOT BE A REASON NO T TO FOLLOW THE JURISDICTIONAL HIGH COURTS JUDGMENT. WE DO NOT FI ND ANY LACUNAE IN THE ORDER OF DRP. 04. IN THE RESULT, APPEAL OF THE REVENUE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH DAY OF APRIL, 2017. SD/- SD/- (VIJAY PAL RAO) (S. JAYARAMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME TAX 4. THE COMMISSIONER OF INCOME TAX (A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR IT(TP)A.422/BANG/2016 PAGE - 3