ITO, Ward-6(3), Hyderabad V. M/s Mackel Components, Hyderabad

ITA 466/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74686 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 05-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEEVAN LAL LAVADIYA
• Assessee Lawyers: A V RAGHURAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 466/HYD/2013 ASSESSMENT YEAR 2009+10 THE INCOME TAX OFFICER WARD+6(3) HYDERABAD VS. M/S. MACKEL COMPONENTS HYDERABAD PAN: AAHFM8983H [APPELLANT] [RESPONDENT] APPELLANT BY: SRI JEEVAN LAL LAVADIYA RESPONDENT BY: SRI A.V. RAGHURAM DATE OF HEARING: 25.02.2014 DATE OF PRONOUNCEMENT: 25.02.2014 ORDER ORDER ORDER ORDER PER CHANDRA POOJARI, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)+IV, HYDERABAD DATED 29.01.2013 FOR AS SESSMENT YEAR 2009+10. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED CIT(A) ERRED BOTH IN LAW AND ON FACTS OF THE CASE. 2. THE LEARNED CIT(A) FAILED TO APPRECIATE THE FACT THAT THE EXPORT PROCEEDS WHICH ARE NOT BROUGHT INTO INDIA WITHIN SIX MONTHS ARE REDUCED FROM THE EXPORT TURNOVER BUT THE SAME SHALL BE PART OF THE TOTAL TURNOVER. ITA NO. 466/HYD/2013 M/S. MACKEL COMPONENTS ========================= 2 3. THE LEARNED CIT(A) ERRED IN DIRECTING THAT BE EXCLUDED 'UNREALISED PROCEEDS' OF RS. 20,69,521/+ FROM 'TOTAL TURNOVER' AS WELL, WHEN NO SUCH ADJUSTMENT IS ALLOWED AS PER THE PROVISIONS OF SECTION 10A OF THE INCOME TAX ACT. 4. THE LEARNED CIT(A) OUGHT TO HAVE NOTICED THAT THE MODE OF CALCULATION OF VARIOUS QUANTITATIVE TERMS HAVE BEEN ENACTED IN SECTION 10A IN DETAIL I.E., WHILE ADJUSTMENTS TO EXPORT TURNOVER HAVE BEEN GIVEN, NO SUCH ADJUSTMENTS TO TOTAL TURNOVER HAVE BEEN ENVISAGED IN SECTION 10A. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THE ISSUE I N DISPUTE IS COVERED BY THE ORDER OF THE SPECIAL BENCH OF THI S TRIBUNAL CHENNAI BENCHES IN THE CASE OF ITO VS. SAK SOFT LTD . [313 ITR (AT) 353), PATNI TELECOM (P) LTD. VS. ACIT (22 SOT 26) ( HYD) AND DCIT VS. SOFTSIL INDIA LTD. (22 SOT 271) (HYD). FOLLOWI NG THE ABOVE DECISIONS, WE ARE INCLINED TO DECIDE THE ISSUE IN F AVOUR OF THE ASSESSEE BY OBSERVING THAT UNREALISED SALE PROCEEDS ARE TO BE REDUCED BOTH FROM EXPORT TURNOVER AS WELL AS FROM T OTAL TURNOVER WHILE COMPUTING DEDUCTION U/S. 10A OF THE IT ACT, 1961. 4. IN THE RESULT, REVENUE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH FEBRUARY, 2014. SD/+ (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/+ (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 25 TH FEBRUARY, 2014 TPRAO ITA NO. 466/HYD/2013 M/S. MACKEL COMPONENTS ========================= 3 COPY FORWARDED TO: 1. THE INCOME TAX OFFICER, WARD+6(3), 6 TH FLOOR, 'C' FLOOR, I.T. TOWERS, AC GUARDS, HYDERABAD. 2. M/S. MACKEL COMPONENTS, PLOT NO. 1222, ROAD NO. 36, JUBILEE HILLS, HYDERABAD+33. 3. THE CIT(A)+IV, HYDERABAD. 4. THE CIT+III, HYDERABAD 4. THE DR BENCH 'B', ITAT, HYDERABAD