DCIT, Bangalore V. M/s Suzlon Wind International Ltd., Bangalore

ITA 52/BANG/2015

• Counselvise Citation: 5221114 RSA 2015
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 20-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FARHAT HUSSAIN QURESHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P.BOAZ, ACCOUNTANT MEMBER ITA NO. 52 / BANG/20 15 (ASSESSMENT YEAR: 20 1 0 - 11 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 6(1)(2), BANGALORE. APPELLANT VS. M/S.SUZLON WIND INTERNATIONAL LTD. 201, II FLOOR, GOLD TOWERS, RESIDENCY ROAD, BANGALORE - 560025. RESPONDENT PAN: AAKCS 4713 M APPELLANT BY: SHRI FARHAT HUSSAIN QURESHI, CIT(DR) RESPONDENT BY: SHRI TATA KRISHNA, ADVOCATE. DATE OF HEARING : 21/05/2015 DATE OF PRONOUNCEMENT: 02 /0 6 /2015 O R D E R PER SMT.P.MADHAVI DEVI, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - III, BANGALORE, DATED 07/10/2014 FOR THE ASSE SSMENT YEAR 2010 - 11. THE REVENUE HAS RAISED AS MANY AS 5 GROUNDS OF APPEAL BUT THE ONLY GRIEVANCE IS THAT THE CIT(A) HAS ERRED IN LAW IN DIRECTING THE AO TO EXCLUDE REIMBURSEMENT OF EXPENSES SUCH AS FREIGHT, TELECOMMUNICATION EXPENSES, INSURANCE INCURRED IN ITA NO . 52 /BANG/20 1 5 M/S.SUZLON WIND INTERNATIONAL LTD. PAGE 2 OF 3 FOREIGN CURRENCY, BOTH FROM EXPORT TURNOVER AS WELL AS TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] BY FOLLOWING THE DECISION OF THE HON BLE KARNATAKA HI GH COURT IN THE CASE OF TATA ELXSI LTD., REPORTED IN 349 ITR 98 EVEN THOUGH THE DEPARTMENT HAS NOT ACCEPTED THE SAME AND SLPS ARE PENDING BEFORE THE HON BLE SUPREME COURT. LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE AO WHILE THE LEARNED COUNSEL FOR THE ASSESSEE PLACED RELIANCE UPON THE ORDER OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD., ( CITED SUPRA). 2. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE IS SQUARELY COVERE D IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI LTD., ( CITED SUPRA) WHEREIN IT HAS BEEN HELD THAT IF ANY EXPENDITURE IS TO BE REDUCED FROM THE EXPORT TURNOVER THEN THE SAME SHOULD ALSO BE REDUCED FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10A OF THE ACT. SINCE THE ORDER OF THE CIT(A) IS IN CONSONANCE WITH THE DECISION OF THE JURISDICTIONAL HIGH COURT, WE SEE NO REASON TO INTERFERE WITH THE SAME. ITA NO . 52 /BANG/20 1 5 M/S.SUZLON WIND INTERNATIONAL LTD. PAGE 3 OF 3 3. IN THE RESULT, THE R EVENUE S APPEAL IS DISMISSED. PRON OUNCED IN THE OPEN COURT ON 2 ND JUNE, 201 5 . SD/ - SD/ - (JASON P BOAZ ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE