DCIT, Bangalore V. M/s General Motors Technicial Centre Pvt. Ltd., Bangalore

ITA 580/BANG/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6730 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 24-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 144C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT BEENA PILLAI , JUDICIAL MEMBER IT(TP)A NOS. AND ASSESSMENT YEAR APPELLANT RESPONDENT 289/BANG/2015 2010-11 M/S. GENERAL MOTORS TECHNICAL CENTRE INDIA PVT. LTD., 3 RD FLOOR, CREATOR BUILDING, INTERNATIONAL TECH PARK, WHITEFIELD ROAD, BENGALURU 560 066. PAN : AADCB 7663 C THE DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE 3(1)(2), BENGALURU. 600/BANG/2016 2011 - 12 -DO- -DO- 580/BANG/2016 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE 3(1)(2), BENGALURU M/S. GENERAL MOTORS TECHNICAL CENTRE INDIA PVT. LTD., BENGALURU 560 066. PAN : AADCB 7663 C 206/BANG/2015 2010 - 11 -DO- -DO- REVENUE BY : MS. NEERA MALHOTRA, CIT - DR ASSESSEE BY : SHRI. AMIT GUPTA, CA DATE OF HEARING : 09 . 12 .201 9 DATE OF PRONOUNCEMENT : 07 . 0 2 .20 20 O R D E R PER BENCH: THESE ARE CROSS APPEAL FILED BY ASSESSEE AND REVENUE FOR ASSESSMENT YEARS 2010-11 AND 2011-12 AND THESE ARE DIRECTED AGAINST TWO SEPARATE ASSESSMENT ORDERS OF THESE TWO YEARS DATED 29.12.2014 FOR ASSESSMENT YEAR 2010-11 AND DATED 27.01.2016 FOR ASSESSMENT YEAR 2011-12 WHICH ARE PASSED IT(TP)A NOS. 206, 289/BANG/2015 AND 580, 600/BANG/2016 PAGE 2 OF 3 BY AO UNDER SECTION 143(3) R.W.S. 144C OF THE IT ACT, 1961AS PER THE DIRECTIONS OF DRP. 2. THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. IN THE COURSE OF HEARING, IT WAS AGREED BY BOTH SIDES THAT IN THESE 2 YEARS, MAP HAS BEEN CONCLUDED AND THEREFORE, TP GROUNDS RAISED BY BOTH PARTIES IN THESE TWO YEARS DO NOT SURVIVE AND THERE IS ONLY ONE CORPORATE TAX ISSUE IN THE APPEAL OF THE REVENUE FOR ASSESSMENT YEAR 2011-12 AS PER GROUND NOS.8 AND 9 BUT THIS ISSUE IS ALSO COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD., AS REPORTED IN 349 ITR 89 AND HENCE, THESE GROUNDS OF THE REVENUE ARE LIABLE TO BE REJECTED AS PER THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THIS IS AN ADMITTED POSITION OF FACT THAT MAP HAS BEEN CONCLUDED FOR BOTH THESE TWO YEARS IN RESPECT OF ASSESSEE COMPANYS TRANSACTION WITH AE IN US. HENCE, THE TP GROUNDS RAISED BY BOTH SIDES IN THESE TWO YEARS DO NOT SURVIVE AND THE SAME ARE REJECTED. IN ADDITION TO THIS, THERE IS ONLY ONE CORPORATE TAX ISSUE IN THE REVENUES APPEAL FOR ASSESSMENT YEAR 2011-12 AS PER GROUNDS 8 AND 9 AND AS PER THESE GROUNDS, THIS IS THE GRIEVANCE OF THE REVENUE THAT DRP WAS NOT RIGHT IN HOLDING THAT EXPENSES REDUCED FROM EXPORT TURNOVER SHOULD BE REDUCED FROM TOTAL TURNOVER ALSO FOR THE PURPOSE OF COMPUTING DEDUCTION ALLOWABLE TO THE ASSESSEE UNDER SECTION 10A OF THE IT ACT, 1961. AS PER THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD., (SUPRA), TOTAL TURNOVER IS SUM TOTAL OF DOMESTIC TURNOVER AND EXPORT TURNOVER AND THEREFORE, IF AN AMOUNT IS REDUCED FROM EXPORT TURNOVER, THEN THE TOTAL TURNOVER ALSO GOES DOWN AUTOMATICALLY BY THE SAME AMOUNT. IT(TP)A NOS. 206, 289/BANG/2015 AND 580, 600/BANG/2016 PAGE 3 OF 3 RESPECTFULLY FOLLOWING THIS JUDGMENT OF HONBLE KARNATAKA HIGH COURT, WE DECLINE TO INTERFERE IN THE AOS ORDER AND DRPS DIRECTIONS ON THIS ISSUE AND ACCORDINGLY THESE TWO GROUNDS 8 IN REVENUES APPEAL FOR ASSESSMENT YEAR 2011-12 ARE REJECTED. 5. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE AND BOTH THE APPEALS OF REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- SD/- ( BEENA PILLAI ) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE. DATED: 07 TH FEBRUARY, 2020. /NS/* COPY TO: 1. APPELLANT S 2. RESPON DENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.