DCIT, Bangalore V. M/s Tata Elxsi Limited, Bangalore

ITA 479/BANG/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63822 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 02-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADAMCHAND KHINCHA
• Assessee Lawyers: FARHAT HUSSAIN QURESHI CITII

Judgement Text

0 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA NO.398/BANG/2012 (ASSESSMENT YEAR: 2006-07) M/S.TATA ELEXSI LTD. ITPB ROAD, HOODY, WHITEFIELD ROAD, BANGALORE. APPELLANT PAN :AAACT472Q VS. ASST. COMMISSIONER OF INCOME - TAX CIRCLE 12(4), BANGALORE . RESPONDENT AND ITA NO.479/BANG/2012 (ASSESSMENT YEAR: 2006-07) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 12(4), BANGALORE. APPELLANT VS. M/S.TATA ELEXSI LTD. BANGALORE. RESPONDENT A SSESSEE BY: SHRI PADAM CHAND KHINCHA, CA. RESPONDENT BY : SHRI FARHAT HUSSAIN QURESHI , CIT - II. DATE OF HEARING: 04 - 12 - 2012. DATE OF PRONOUNCEM ENT: 04 - 12 - 2012. O R D E R PER SMT. P.MADHAVI DEVI, JM: THESE ARE CROSS APPEALS BY THE ASSESSEE AS WELL AS THE REVENUE FOR THE ASSESSMENT YEAR 2006-07. ITA NOS.398 & 479/BANG/2012 PAGE 2 OF 3 2. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN CONCLUDING THAT THE FOLLOWING ARE TO BE EXCLUDED FR OM EXPORT TURNOVER IN COMPUTING DEDUCTION U/S 10A OF THE INCO ME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT']: (I) THE TELECOMMUNICATION CHARGES OF ` 1,01,53,533/-, (II) PREMIUM PAID TO EXPORT CREDIT GUARANTEE CORPOR ATION OF INDIA LTD., (ECGC) OF ` 23,99,000/- FOR PROTECTING THE ASSESSEE AGAINST THE RISK OF LOSS ON ACCOUNT OF NON - PAYMENT OF DUES BY OVERSEAS CUSTOMERS DUE TO BANKRUPTCY, AND (III) EXPENSES INCURRED IN FOREIGN CURRENCY AMOUNTI NG TO ` 41,62,42,000/-. 2.1 IT IS SUBMITTED BY THE LEARNED COUNSEL F OR THE ASSESSEE THAT THE ABOVE EXPENSES ARE CONNECTED WITH THE BUSI NESS OF THE ASSESSEE AND THEREFORE ARE NOT TO BE EXCLUDED FROM THE EXPORT TURNOVER WHILE COMPUTING DEDUCTION U/S 10A OF THE A CT. HE SUBMITTED THAT THE CIT(A), HOWEVER, HAS DIRECTED TH E AO TO EXCLUDE THESE EXPENSES FROM BOTH THE EXPORT TURNOVE R AND THE TOTAL TURNOVER FOR THE PURPOSE OF DEDUCTION U/S 10A . HE SUBMITTED THAT THE REVENUE IS IN APPEAL AGAINST THE SAID DIRE CTION OF THE CIT(A). THOUGH THE LEARNED COUNSEL FOR THE ASSESSE E DID NOT LEAVE THE GROUNDS OF APPEAL IN THE ASSESSEES APPEAL, WE FIND THAT THE ITA NOS.398 & 479/BANG/2012 PAGE 3 OF 3 ALTERNATIVE GROUND OF THE ASSESSEE HAS BEEN ACCEPTE D BY THE CIT(A) AND THE ISSUE IS ALSO COVERED BY THE DECISIO N OF THE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CAS E. IN VIEW OF THE SAME, WE DO NOT SEE ANY REASON TO INTERFERE WIT H THE ORDER OF THE CIT(A). WITHOUT GOING INTO THE MERITS OF THE A SSESSEES APPEAL, BOTH THE ASSESSEES AS WELL AS THE REVENUE S APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4TH DECEMBER, 2012 . SD/- SD/- (JAS O N P. BOAZ ) ACCOUNTANT MEMBER (SMT. P. MADHAVI DEVI) JU DICIAL MEMBER EKSRINIVASULU COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBU NAL, BANGALORE