DCIT, CHENNAI V. Maars Software International Ltd., CHENNAI

ITA 631/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4262 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-06-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 13-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, B/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL B/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.631 /MDS./2017 ( / ASSESSMENT YEAR :2002-03) DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-4(1), CHENNAI. VS. M/S. MAARS SOFTWARE INTERNATIONAL LTD., 2 ND FLOOR, EAST COAST CHAMBERS, 92, G.N.CHETTY ROAD, T.NAGAR, CHENNAI 600 017. PAN AAACM 4527 H ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.V.SREENIVASAN, JCIT, D.R $% ! ' # / RESPONDENT BY : NONE & ' ' ( ) / DATE OF HEARING : 19.06.2017 *+ ' ( ) /DATE OF PRONOUNCEMENT : 19.06.2017 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE, AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-8, CHENNA I DATED 06.01.2017 PERTAINING TO ASSESSMENT YEAR 2002-03. ITA NO. 631/MDS/2017 2 2. THE ONLY GROUND IN THIS APPEAL IS WITH REGARD T O DELETION OF DISALLOWANCE OF DEDUCTION U/S.10A OF THE ACT ON FOR EIGN EXCHANGE GAIN OF ` 37,28,199/- BY LD.CIT(A). 3. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CASE IS TAKEN FOR ADJUDICATION AFTER HEARING THE LD.D.R. 4. AFTER PERUSING THE MATERIAL ON RECORD AND HEARI NG THE LD.DR, THE SIMILAR ISSUE CAME FOR CONSIDERATION BEFORE THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. PENTASOFT TECHNOLOGIE S LTD., IN (2012) 347 ITR 578(MADRAS) WHEREIN HELD THAT:- 4. IN ORDER TO ALLOW A CLAIM UNDER SECTION 10A OF THE ACT, WHAT ALL IS TO BE SEEN IS WHETHER SUCH BENEFIT EARNED BY THE ASSES SEE WAS DERIVED BY VIRTUE OF EXPORT MADE BY THE ASSESSEE. THE EXCHA NGE VALUE BASED ON UPWARD OR DOWNWARD OF THE RUPEE VALUE IS NOT IN THE HANDS OF THE ASSESSEE. IN OTHER WORDS, THE ASSESSEE DOES NOT DET ERMINE THE EXCHANGE VALUE OF THE INDIAN RUPEE. IT HAS TO BE RE MEMBERED BUT FOR THE FACT THAT THE ASSESSEE IS AN EXPORT HOUSE, THERE WA S NO QUESTION OF EARNING ANY FOREIGN EXCHANGE. THEREFORE, WHEN THE F LUCTUATION IN FOREIGN EXCHANGE RATE WAS SOLELY RELATABLE TO THE E XPORT BUSINESS OF THE ASSESSEE AND THE HIGHER RUPEE VALUE WAS EARNED BY V IRTUE OF SUCH EXPORTS CARRIED OUT BY THE ASSESSEE, THERE IS NO RE ASON WHY THE BENEFIT OF SECTION 10A SHOULD NOT BE ALLOWED TO THE ASSESSE E. ITA NO. 631/MDS/2017 3 BEING SO, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD.CIT(A) WHEREIN HE HAS FOLLOWED THE BINDING DECISION OF THE JURISDI CTIONAL HIGH COURT. ACCORDINGLY, THE GROUND RAISED BY THE REVENUE STAND S DISMISSED. 5. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISS ED. ORDER PRONOUNCED ON 19 TH JUNE, 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 19 TH JUNE, 2017 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF