M/s.Suntech Business Solutions P. Ltd, Thiruvananthapuram V. The ACIT, Circle-1(1), Trivandrum, Trivandrum

ITA 579/COCH/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2272 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-11-2018
• Assessment Year: 2004-2005
• Appeal Filed On: 09-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTHAM BOSE
• Assessee Lawyers: RAGHUNATHAN S
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJAR I, AM & SHRI GEORGE GEORGE K, JM ITA NO. 579 /COCH/201 7 : ASST.YEAR 2004 - 2005 M/S. SUNTEC BUSINESS SOLUTIONSD PRIVATE LIMITED TC 4/2399 - 1, KURAVANKONAM KOWDIAR P.O. THIRUVANANTHAPURAM PIN 695 003. PAN : AAJFS9814M . VS. THE ASST.COMMISSIONER OF INCOME - TAX, CIRCLE - 1 TRIVANDRUM. (APPELLANT) (RESPONDENT) APPELLANT BY : SRI. RAGHUNATHAN S RESPONDENT BY : SRI.SANTHAM BOSE DATE OF HEARING : 13.11.2018 DATE OF PRONOUNCEMENT : 14 .11.2018 O R D E R PER GEORGE GEORGE K., JM THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST CIT(A)S ORDER DATED 07.08.2017 . THE RELEVANT ASSESSMENT YEAR IS 2004 - 2005 . 2. THE SOLITARY GROUND THAT WAS ARGUED BY THE AR DURING THE COURSE OF HEARING READ AS FOLLOWS : - 2.5 WITHOUT PREJUDICE TO THE ABOVE, IT IS HUMBLY SUBMITTED BY THE APPELLANT THAT REDUCTIONS, IF ANY, MADE FROM THE EXPORT TURNOVER SHOULD ALSO BE CORRESPONDINGLY REDUCED FROM THE TOTAL TURNOVER. THE SAID FACT HAS BEEN CONFIRMED BY THE HON'BLE COCHIN TRIBUNAL IN APPELLANT'S OWN CASE [ IT(TP)A NO. 01/ COCH / 20 13] . THOUGH THE SAID FACT WAS ALSO INTIMATED TO THE CIT(A), VIDE SUBMISSION DATED 31 ITA NO. 579 / COCH /201 7 . M/S. SUNTECH BUSINESS SOLUTIONS P. LTD. 2 AUGUST 2017, THE IMPUGNED ORDER IS SILENT AS TO THE SAID ASP ECT. 3. BRIEF FACTS OF THE CASE ARE AS FOLLOWS: - THE ASSESSEE HAD CLAIMED DEDUCTION U/S 10B OF THE I.T.ACT. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT BY RE - COMPUTING THE DEDUCTION U/S 10B OF THE I.T.ACT. THE ASSESSING OFFICER REDUCED FROM THE EXPO RT TURNOVER THE FOLLOWING AMOUNTS WHILE CALCULATING DEDUCTION U/S 10B OF THE I.T.ACT: - ( I ) INTERNET CHARGES AMOUNTING TO RS.11,10,485. ( II ) TRAVELLING EXPENSES AMOUNTING TO RS.18,64,186. 4. AGGRIEVED BY THE RE - COMPUTATION OF DEDUCTION U/S 10B OF THE I.T.ACT, THE ASSESSEE PREFERRED AN APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A) CONFIRMED THE DEDUCTION CALCULATED BY THE ASSESSING OFFICER. 5. AGGRIEVED BY THE ORDER OF THE FIRST APPELLATE AUTHORITY, THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRI BUNAL. THE LEARNED COUNSEL FOR THE ASSESSEE HAD SUBMITTED THAT WHEN AMOUNTS ARE REDUCED FROM THE EXPORT TURNOVER IN THE NUMERATOR, THE SAME SHOULD ALSO BE REDUCED FROM THE TOTAL TURNOVER IN THE DENOMINATOR. FOR THE ABOVE PROPOSITION, THE LEARNED AR RELIED ON TH E JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF CIT V. HCL TECHNOLOGIES LTD. [(2018) 404 ITR 719 (SC)] . THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS PASSED BY THE ASSESSING OFFICER AND THE CIT(A). ITA NO. 579 / COCH /201 7 . M/S. SUNTECH BUSINESS SOLUTIONS P. LTD. 3 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE CONTENTION NOW RAISED BY THE ASSESSEE THAT WHEN THE AMOUNTS ARE REDUCED FROM THE EXPORT TURNOVER, THE SAME SHOULD ALSO BE REDUCED FROM THE TOTAL TURNOVER WHIL E CALCULATING DEDUCTION U/S 10B OF THE I.T.ACT IS SEEN NOT EMANATING FROM ORDERS OF THE ASSESSING OFFICER NOR THE FIRST APPELLATE AUTHORITY. HOWEVER, THE ISSUE RAISED IS A PURE LEGAL ISSUE AND IS COVERED BY THE JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF CIT V. HCL TECHNOLOGIES LTD. (SUPRA) , WHE REIN IT WAS CATEGORICALLY HELD THAT WHEN AMOUNTS ARE REDUCED FROM THE EXPORT TURNOVER, THE SAME HAS ALSO TO BE EXCLUDED FROM THE TOTAL TURNOVER WHILE COMPUTING THE DEDUCTION U/S 10A / 10B OF THE I.T.ACT. SINCE THE MATTER WAS NOT CONSIDERED BY THE A.O. NOR THE CIT(A), WE DEEM IT APPROPRIATE TO RESTORE THE ISSUE TO THE A.O. TO CONSIDER THE JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF CIT V. HCL TECHNOLOGIES LTD. (SUPRA) AND TAKE A DECISION IN ACCORDANCE WITH LAW. IT IS ORDERED ACCORDINGLY. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 14 TH DAY OF NOVEMBER, 2018 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K. ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN ; DATED : 14 TH NOVEMBER, 2018 . DEVDAS* ITA NO. 579 / COCH /201 7 . M/S. SUNTECH BUSINESS SOLUTIONS P. LTD. 4 COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), THIRUVANANTHAPURAM . 4. THE PR.CIT, THIRUVANANTHAPURAM . 5. DR, ITAT, COCHIN 6 . GUARD FILE.