DCIT, CHENNAI V. YCH Logistics India (P) Ltd., Kancheepuram

ITA 533/CHNY/2015

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9886 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 16-03-2015
• Court: TRIBUNAL
• Department Lawyers: JOE SEBASTIAN
• Assessee Lawyers: M JAGANNATHAN
• Section: 10AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.533/MDS/2015 / ASSESSMENT YEAR : 2010-11 THE DY. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 3(2) CHENNAI VS. M/S YCH LOGISTICS INDIA (P) LTD PLOT NO.DV1 SIPCOT HI-TECH PHASE II, SIRUMANGADU VILLAGE SRIPURUMPUDUR TALUK KANCHEEPURAM DISTRICT 602 105 [PAN AAACY 2873 L] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI JOE SEBASTIAN, CIT /RESPONDENT BY : SHRI M. JAGANNATHAN, CA / DATE OF HEARING : 20 - 05 - 2015 ! / DATE OF PRONOUNCEMENT : 26 - 0 6 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE DY. COMMISSIONER OF INCOME-TAX, CORPORATE CIRC LE III(2), CHENNAI, DATED 14.1.2015 AND PERTAINS TO ASSESSMENT YEAR 20 09-10. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REG ARD TO EXCLUSION OF EXPENDITURE INCURRED IN FOREIGN CURREN CY AND ITA NO.533/15 :- 2 -: TELECOMMUNICATION CHARGES FROM THE EXPORT TURNOVER AND ALSO FROM THE TOTAL TURNOVER FOR COMPUTING DEDUCTION U/S 10AA OF THE ACT. 3. THE ONLY OBJECTION OF THE LD. DR IS THAT THE DISPUT E RESOLUTION PANEL (DRP) BY FOLLOWING THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN THE CASE OF ITO VS SAK SOFT L TD 121 TTJ 865, DIRECTED THE ASSESSING OFFICER TO EXCLUDE THE EXPEN DITURE INCURRED IN FOREIGN CURRENCY AND TELECOMMUNICATION CHARGES FROM THE EXPORT TURNOVER AND TOTAL TURNOVER. SINCE THE MATTER IS PE NDING BEFORE THE HON'BLE HIGH COURT, ACCORDING TO THE LD. DR, THE RE VENUE HAS FILED THE PRESENT APPEAL. 4. WE HEARD SHRI M. JAGANNATHAN, LD. REPRESENTATIVE FO R THE ASSESSEE ALSO. 5. THE SPECIAL BENCH OF THIS TRIBUNAL IN SAK SOFT LTD (SUPRA) HAS EXAMINED THE ISSUE ELABORATELY AND FOUND THAT THE F IGURE WHICH WAS EXCLUDED FROM THE EXPORT TURNOVER HAS ALSO TO BE EX CLUDED FROM THE TOTAL TURNOVER. IN OTHER WORDS, THE EXPENDITURE IN CURRED IN FOREIGN CURRENCY AND TELECOMMUNICATION CHARGES ARE TO BE EX CLUDED FROM THE EXPORT TURNOVER AND ALSO FROM THE TOTAL TURNOVER FO R THE PURPOSE OF COMPUTING DEDUCTION U/S 10AA OF THE ACT. SINCE TH E DRP HAS FOLLOWED THE DECISION OF THE SPECIAL BENCH, WE DO NOT FIND A NY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY AND THE SAME IS CONFIR MED. ITA NO.533/15 :- 3 -: 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 26 TH JUNE, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF