DCIT, Cir-1(3), Hyderabad V. M/s. BA Contimuum Solutions Pvt.Ltd, Hyderabad

ITA 630/HYD/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6623 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ATUL PRANAY
• Assessee Lawyers: TA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMB ER ITA NOS.630 &631/HYD/2011 : ASST. YEARS: 20 06-07 & 2007- 08 DCIT, CIR-1(3), HYDERABAD. VS M/S BA CONTINUUM SOLUTIONS PVT. LTD., HYDERABAD. (PAN: AACCC 2310 C) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ATUL PRANAY RESPONDENT BY : SHRI TAPAN GUPTA O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER: THESE TWO APPEALS OF THE REVENUE ARE DIRECTED AGAINS T THE SEPARATE ORDERS OF THE CIT (A)-II, HYDERABAD DATED 7-3 -2011 AND THEY PERTAIN TO THE ASSESSMENT YEARS 2006-07 AND 2007-08. SI NCE COMMON GROUNDS WERE TAKEN BY THE REVENUE IN BOTH THESE APPEA LS, THESE ARE CLUBBED TOGETHER AND DISPOSED OFF BY THIS COMBINED ORDER FOR THE SAKE OF CONVENIENCE. 2. AT THE OUTSET, WE FIND THAT THE ONLY EFFECTIVE G ROUND RAISED BY THE REVENUE IS WHETHER THE CIT (A) IS CORRECT IN DIR ECTING THE ASSESSING OFFICER TO EXCLUDE THE TELECOMMUNICATION CHARGES FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDU CTION UNDER SECTION 10A OF THE ACT OR NOT. ON SIMILAR AND IDENTICAL FACTS, THE SPECIAL BENCH OF CHENNAI TRIBUNAL IN THE CASE OF ITO VS. SAK SOFT LI MITED REPORTED IN 313 ITR 353 HAS DISCUSSED THE ABOVE ARITHMETICAL CALCULATI ON IN DETAIL ITA NOS.630 & 631 OF 2011 BA CONTINUUM INDIA PV T. LTD., HYD. ========================= 2 AND HELD THAT IF ANY EXPENSES ARE DEDUCTED FROM THE E XPORT TURNOVER, THE SAME SHOULD ALSO BE DEDUCTED FROM THE TOTAL TURNOV ER FOR THE PURPOSE OF COMPUTING THE DEDUCTION ELIGIBLE UNDER SECTIO N 10A OF THE ACT. RESPECTFULLY FOLLOWING THE SAID DECISION OF THE SPECI AL BENCH (CHENNAI) OF THE TRIBUNAL, WE FIND NO INFIRMITY IN THE ORDER OF THE FIRST APPELLATE AUTHORITY ON THIS ISSUE. ACCORDINGLY, WE CONF IRM THE VIEW TAKEN BY THE CIT (A) FOR THE YEARS UNDER CONSIDERATION . IN VIEW OF THIS , WE REJECT THE GROUNDS RAISED BY THE REVENUE. 3. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 -6-2011. SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/-30 -06-2011. COPY FORWARDED TO: 1. DCIT, CIRCLE-1(3), ROOM NO.413, 4 TH FLOOR, AAYAKAR BHAVAN, HYDERABAD. 2. 3. 4 5. JMR* M/S. BA CONTINUUM INDIA PVT. LTD., BUILDING NO.5, MI ND SPACE HITECH CITY, MADHAPUR, HYDERABAD. CIT (A)-II, HYDERABAD. CIT, AP, HYDERABAD. THE DR, ITAT, HYDERABAD. ITA NOS.630 & 631 OF 2011 BA CONTINUUM INDIA PV T. LTD., HYD. ========================= 3