M/s Eka Software Solutions Private Limited, Bangalore V. Assistant Commissioner of Income-Tax, Circle-2(1)(2), Bangalore

ITA 613/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4482 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 29-06-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: Period of limitation; Time period of passing order
• Section: 10

Judgement Text

ITA NO.613 /BANG/2020 M/S. EKA SOFTWARE SOLUTIONS PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL CBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.613/BANG/2020 ASSESSMENTYEAR: 2010-11 M/S. EKA SOFTWARE SOLUTIONS PVT. LTD. BUILDING 2A, EAST TOWER, EMBASSY TECH VILLAGE, OUTER RING ROAD, DEVARABEESANAHALLI, VARTHURHOBLI BANGALORE-560 037. PAN NO : AABCE3660Q VS. ACIT CIRCLE-2(1)(2) BANGALORE APPELLANT RESPONDENT APPELLANT BY : SHRI AJAY ROTTI, A.R. RESPONDENT BY : SMT. R. PREMI, D.R. DATE OF HEARING : 15.10.2020 DATE OF PRONOUNCEMENT : 16.10.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 28.2.2020 PASSED BY LD. CIT(A)-2, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2010-11. IN THIS APPEAL, THE ASSES SEE IS CONTENDING THAT THE LD. CIT(A) HAS NOT ADJUDICATED LEGAL GROUNDS RELATING TO THE VALIDITY OF THE ASSESSMENT ORDER PA SSED BEYOND THE LIMITATION PERIOD AND ALSO IN NOT ADJUDICATING THE GROUND RELATING TO DISALLOWANCE MADE U/S 40(A)(I) OF THE INCOME-TAX AC T,1961 ['THE ACT' FOR SHORT]. ITA NO.613 /BANG/2020 M/S. EKA SOFTWARE SOLUTIONS PVT. LTD., BANGALORE PAGE 2 OF 3 2. THE LD. COUNSEL APPEARING FOR THE ASSESSEE SUBMI TTED THAT THE GROUND URGED ON MERITS RELATE TO DISALLOWANCE M ADE BY THE A.O. U/S 40(A)(I) OF THE ACT. HE SUBMITTED THAT THE LD. CIT(A) DID NOT ADJUDICATE THE CONTENTION OF THE ASSESSEE THAT NO D ISALLOWANCE U/S 40(A)(I) OF THE ACT IS CALLED FOR. THE ASSESSEE HA D RAISED AN ALTERNATIVE CONTENTION BEFORE LD. CIT(A) THAT THE D ISALLOWANCE MADE U/S 40(A)(I) OF THE ACT WOULD GO TO INCREASE THE AM OUNT OF PROFITS OF BUSINESS AND HENCE, THE DEDUCTION ALLOWABLE U/S 10 A OF THE ACT WOULD ALSO INCREASE CORRESPONDING TO THE AMOUNT OF DISALLOWANEC. THE ALTERNATIVE CONTENTION OF THE ASSESSEE WAS ACCE PTED BY THE LD. CIT(A) BY FOLLOWING THE DECISION RENDERED BY THE TR IBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.2114/BANG/2019 AND AC CORDINGLY, THE LD. CIT(A) HAS DIRECTED THE A.O. TO RE-COMPUTE DEDUCTION U/S 10A OF THE ACT. ACCORDINGLY, THE LD. A.R. SUBMITTE D THAT, IF THE A.O. GIVES EFFECT TO THE ORDER PASSED BY LD. CIT(A), THE RE WILL BE NO ADDITIONAL TAX LIABILITY IN THE HANDS OF THE ASSESS EE. SINCE THE A.O. HAS NOT YET GIVEN EFFECT TO THE ORDER OF LD. CIT(A) , THE ASSESSEE FILED THIS APPEAL BEFORE TRIBUNAL. 3. THE LD. A.R. SUBMITTED THAT THE GROUNDS URGED IN THIS APPEAL WOULD BECOME ACADEMIC IN NATURE IF THE A.O. GIVE EF FECT TO THE ORDER OF LD. CIT(A) WITH REGARD TO THE RE-COMPUTATION OF DEDUCTION U/S 10A OF THE ACT. ACCORDINGLY, WITHOUT PREJUDICE TO THE RIGHT OF THE ASSESSEE TO SEEK RECALL OF THE ORDER FOR ADJUDICATI ON OF THE GROUNDS URGED IN THE PRESENT APPEAL, THE LD A.R SUBMITTED T HAT THE TRIBUNAL MAY DISPOSE OF THE APPEAL BY DIRECTING THE AO TO GI VE EFFECT TO THE DIRECTIONS GIVEN BY LD CIT(A) WITH REGARD TO THE RE -COMPUTATION OF DEDUCTION U/S 10A OF THE ACT 4. WE HEARD LD. D.R. AND PERUSED THE RECORD. WE NO TICE THAT THE LD. CIT(A) HAS ALREADY GIVEN DIRECTION TO THE A .O. TO RECOMPUTE THE DEDUCTION U/S 10A OF THE ACT CONSEQUENT TO DISA LLOWANCE MADE ITA NO.613 /BANG/2020 M/S. EKA SOFTWARE SOLUTIONS PVT. LTD., BANGALORE PAGE 3 OF 3 BY HIM U/S 40(A)(I) OF THE ACT. ACCORDING TO THE A SSESSEE, THERE WILL NOT BE ANY ADDITIONAL TAX LIABILITY, IF THE ABOVE S AID DIRECTION IS GIVEN EFFECT TO BY THE A.O. UNDER THESE SET OF FACTS, TH E GROUNDS URGED BY THE ASSESSEE BEFORE TRIBUNAL WOULD BECOME ACADEMIC IN NATURE. WE HAVE ALSO CONSIDERED THE PRAYER OF THE LD. A.R. AC CORDINGLY, WE DIRECT THE A.O. TO GIVE EFFECT TO THE ORDER OF THE LD. CIT(A) AS EXPEDITIOUSLY AS POSSIBLE. ACCORDINGLY, WE DO NOT FIND IT NECESSARY TO ADJUDICATE THE GROUNDS URGED BY THE ASSESSEE BEF ORE US. THE ASSESSEE MAY SEEK RECALL OF THE ORDER, IF FOUND SO NECESSARY. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH OCT, 2020 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 16 TH OCT, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE