Pennant Technologies Private Limited, Hyderabad, Hyderabad V. ITO, Ward-16(2), Hyderabad, Hyderabad

ITA 613/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6065 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 23-08-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 06-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Keywords: Additional evidence
• Section: 143(3); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 613 /HYD/20 17 (ASSESSMENT YEAR : 20 11 - 12 ) M/S. PENN A NT TECHNOLOGIES PRIVATE LIMITED, HYDERABAD. PAN AADCP9525F ..APPELLANT. VS. INCOME TAX OFFICER, WARD 16(2), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI B. SATYANARAYANA MURTHY. RESPOND ENT BY : SHRI ROHIT MAJUMDAR. (D.R.) DATE OF HEARING : 23.08 . 2021. DATE OF PRONOUNCEMENT : 07 .0 9 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 20 11 - 12 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 4 , HYDERABAD S ORDER DT. 25.01.2017 PASSED IN CASE NO. 0030/ 13 - 14/ITO, WD.16(2)/ CIT(A) - 4/HYD/16 - 17 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 613/HYD/2017 HEARD BOTH THE PART IES . C ASE FILE PERUSED. 2. THE ASSESSEE RAISES THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL : 3 ITA NO. 613/HYD/2017 4 ITA NO. 613/HYD/2017 3. WE COME TO THE FORMER ISSUE OF COMPUTATION OF ASSESSEES EXPORT TURNOVER QUA INTERNET CHARGES OF RS.2,41,173 AND TELEPHONE CHARGES OF RS.2,24,229. THERE IS HARDLY ANY DISPUTE ON THE INSTANT FORMER ISSUE BY NOW AS PER HON'BLE APEX COURT RECENT DECISION IN ADDL. CIT VS. HCL TECHNOLOG IES LTD. (2018) 404 ITR 71 9 (SC) FOLLOWED BY THE CBDT CIRCULAR NO.4 OF 2018 DT.14.8.2018 THAT COMMUNICATION CHARGES DESERVES TO BE EXCLUDED FROM BOTH EXPORT AS WELL AS TOTAL TURNOVER. WE THEREFORE ACCEPT THE ASSESSEE'S INSTANT FORMER SUBSTANTIVE GRIEVANCE FOR STATISTICAL PURPOSES AND DIRECT THE ASSESSING OFFICER TO FRAME CONSEQUENTIAL COMPUTATION AS PER LAW. 4. NEXT COMES THE LATTER ISSUE OF ON SITE EXPENSES PAYMENT CLAIM DISALLOWANCE OF RS.1,37,61,019 PAID TO M/S. DI C E TEK LLC TOWARDS STAFF SALARY AND CONSULTANCY CHARGES 5 ITA NO. 613/HYD/2017 RE GARDING THE ALLEGED ON SITE SERVICES. THE ASSESSEE HAS PREFERRED IT S PETITION DT.30.09.2019 UNDER RULE 29 OF THE ITAT RULE ALONG WITH ITS DETAILED PAPER BOOK RUNNING INTO 8 PAGES AS EVIDENCE OF ACTUAL PAYMENT. LEARNED COUNSEL INVITED OUR ATTENTION TO ALL THE RELEVANT DETAILS THEREIN CONTAINING THE DESCRIPTION OF PAYMENTS FROM 7.4.2010 TO 29.3.2011 ALONG WITH EMPLOYEES NAMES, INVOICE AND OTHER SIMILAR PARTICULARS. THE REVENUE COMES ON THE OTHER HAND IS THAT ALL THESE ADDITIONAL EVIDENCES GIVE ALTOGETHER A NEW COLOUR TO THE ASSESSEE'S CLAIM. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT ALL TH ESE PARTICULARS ARE VERY MUCH RELEVANT ARGUMENTS SO FAR AS THE ASSESSEES IMPUGNED CLAIM IS CONCERNED. WE THEREFORE ADMIT THE SAME UNDER RULE 29 OF ITAT RULES AND REMIT THE ISSUE BACK TO THE ASSESSING OFFICER FOR HIS AFRESH FACTUAL VERIFICATION; A T ASSE SSEE'S RISK AND RESPONSIBILITY, WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. NO OTHER ARGUMENT HAS BEEN RAISED BEFORE US. 6 ITA NO. 613/HYD/2017 5. THIS ASSESSEE'S APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH SEPT . , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 07 .0 9 .2021. * REDDY GP COPY TO : 1. M/S. PENNANT TECHNOLOGIES PVT. LTD., 4 - 1 - 98/8/9, NEAR IMAGE GARDEN FUNCTION HALL, MADHAPUR, HYDERABAD - 500 081 2. ITO, WARD 16(2), HYDERABAD. 3. PR. C I T - 4 , HYDERABAD. 4. CIT(APPEALS) - 4, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.