M/s. Aditya Birla Minacs IT Services Ltd, Bangalore V. ACIT, Bangalore

ITA 43/BANG/2011

• Counselvise Citation: 4321114 RSA 2011
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 01-02-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 17-01-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: FARAHAT HUSSAIN QURESHI
• Assessee Lawyers: PRASHANTH JAIN
• Section: 143(3); 148

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.43/BANG/2011 (ASST. YEAR - 2001-02) M/S ADITYA BIRLA MINACS IT SERVICES LTD (FORMERLY PSI DATA SYSTEMS LTD.,) BANGALORE. . APPELLANT VS. THE ASTT. COMMISSIONER OF INCOME-TAX, CIRCLE-12(2), BANGALORE. . RESPONDENT PAN NO.AAACP6092N. APPELLANT BY : SHRI PRASHANTH JAIN RESPONDENT BY : SHRI FARAHAT HUSSAIN QURESHI DATE OF HEARING : 01-02-2012 DATE OF PRONOUNCEMENT : 10-02-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) III AT BANGALORE DATED 26.10.2010. THE APPEAL ARISES O UT OF THE ITA NO.43/B/11 2 ASSESSMENT COMPLETED U/S 143(3) R.W.S 147 OF THE IN COME-TAX ACT, 1961. 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN UPHOLDING THE VALIDITY OF THE REOPENING O F THE ASSESSMENT U/S 148 OF THE INCOME-TAX ACT AND ALSO IN HOLDING T HAT THE DEDUCTION U/S 10A IN RESPECT OF PROFITS OF STPI UNIT HAS TO B E ALLOWED ONLY AFTER SETTING OFF OF LOSS FROM THE NON STP UNITS. 3. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE ON MERITS I.E WHETHER THE DEDUCTION U/S 10A HAS TO BE ALLOWED BEFORE SETTING OFF OF LOSS FROM THE NON STP UNITS HAS ARISEN FOR CONSIDERATION BEFORE THE HONBLE JUR ISDICTIONAL HIGH COURT IN THE CASE OF YOKOGAWA INDIA LTD IN ITA NO. 78/BANG/2011 DATED 9 TH AUG, 2011, WHEREIN THE HONBLE KARNATAKA HIGH COUR T HAS HELD THAT INCOME OF 10A UNIT HAS TO BE DEDUCTED AT SOURCE ITSELF AND NOT AFTER COMPUTING THE GROSS TOTAL INCOME OF THE A SSESSEE. HE SUBMITTED THAT THE VARIOUS BENCHES OF THE TRIBUNAL HAVE FOLLOWED THIS ORDER AND HAS ALLOWED THE APPEALS OF THE ASSESSEES. HE HAS PLACED A PAPER BOOK CONTAINING THE SAID DECISIONS. ITA NO.43/B/11 3 4. THE LEARNED DR HOWEVER SUPPORTED THE ORDERS OF T HE AUTHORITIES BELOW : 5. HAVING HEARD BOTH THE PARTIES, WE FIND THAT THE ISSUE ON MERITS IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISIO N OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF YOKOGAWA I NDIA LTD. WHICH HAS SUBSEQUENTLY BEEN FOLLOWED BY THE JURISDICTIONAL HI GH COURT ONLY IN THE CASE OF PSI DATA SYSTEMS LTD IN ITA NO.196 OF 2 010. THESE DECISIONS HAVE ALSO BEEN FOLLOWED BY THE TRIBUNAL I N THE FOLLOWING CASES - 1) PSI DATA SYSTEMS LTD., IN ITA NOS.196/2010. 2) KPIT CUMMINS INFOSYSTEMS (BANGALORE) PVT. LTD. IN ITA NO.60/BANG/2008 DT. 29/08/2008. 3) NOUS INFOSYSTEMS PVT. LTD., IN ITA NOS.589 & 666/BANG/2008 DT. 7.11.2008. 4) I GATE GLOBAL SOLUTIONS LTD., IN ITA NOS.248 & 249/BANG/2007 DT. 27/11/2007. 5) MEDREICH LTD., IN ITA NO.632/BANG/2008 DATED 2 1.11.2008. 6) SYMANTIC SOFTWARE INDIA PVT. LTD., IN ITA NO.787 /PN/2009 DT. 30/11/2011. ITA NO.43/B/11 4 6. RESPECTFULLY FOLLOWING THE DECISIONS OF JURISDIC TIONAL HIGH COURT, THE GROUNDS NO.2 OF THE ASSESSEE IS ALLOWED. 7. COMING TO GROUND NO.1 RELATING TO VALIDITY OF J URISDICTION U/S 148 OF THE INCOME-TAX ACT, WE FIND THAT IT NEEDS NO ADJUDICATION AT THIS STAGE, AS THE ASSESSEE HAS ALREADY BEEN GIVEN RELIE F ON MERITS OF THE CASE. HOWEVER, IT SHALL BE LEFT OPEN TO THE ASSESS EE TO AGITATE BEFORE THE HIGHER FORUM IF THE ASSESSEE SO DESIRES. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON FEB, 2012. SD/- SD/- (N.K SAINI) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER VMS. BANGALORE DATED : 10/02/2012 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. ITA NO.43/B/11 5