Logica Private Limited, Bangalore V. ACIT, Bangalore

ITA 64/BANG/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5128 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-07-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 22-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80HHC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE DR. O.K NARAYANAN, VICE PRESIDENT AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NOS.64 & 6 5 /BANG/2010 (ASST. YEAR2 - 2002- 03 & 2003-04) M/S LOGICA PRIVATE LIMITED (FORMERLY, LOGICACMG PRIVATE LIMITED) 124-125, YEMLUR P.O, OFF AIRPORT ROAD, BANGALORE-560 037. . APPELLANT VS. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-11(3), BANGALORE. . RESPONDENT APPELLANT BY : SHRI GAURAV BAJARIA, CHARTERED ACCOUNTA NT RESPONDENT BY : SHRI KUMAR AJEET, JT. COMMISSIONE R OF INCOME-TAX O R D E R PER DR. O.K NARAYANAN, VICE PRESIDENT THESE TWO APPEALS ARE FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEARS ARE 2002-03 AND 2003-04. THESE AP PEALS ARE DIRECTED AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME-TAX ITA NOS.64 & 65/B/10 2 (APPEALS) - I AT BANGALORE DATED 9/11/2009 AND 10/1 1/2009 RESPECTIVELY. 2. THE ONLY ISSUE RAISED IN THESE TWO APPEALS, WHIC H IS COMMON FOR BOTH THE ASSESSMENT YEARS IS THAT THE LOWER AUT HORITIES HAVE ERRED IN REDUCING THE COMMUNICATION EXPENSES FORM THE EXP ORT TURNOVER OF THE ASSESSEE WITHOUT MAKING A CORRESPONDING DEDUCTI ON FROM THE TOTAL TURNOVER, IN THE CONTEXT OF COMPUTATION OF DEDUCTIO N AVAILABLE U/S 10A. 3. IN THE CASE OF ITO VS. SAK SOFT LTD., ITAT CHENN AI D SPECIAL BENCH HAS HELD THAT ON THE BASIS OF PARITY PRINCIPLE ANY DEDUCTION MADE BY WAY OF ADJUSTMENTS IN THE EXPORT TURNOVER HAS NECESSARILY TO BE DEDUCTED FROM THE TOTAL TURNOVER OF AN ASSESSEE WHILE WORKING OUT THE BENEFITS AVAILABLE U/S 10B. THE IT AT, BANGALORE B BENCH IN THE CASE OF M/S INTEL TECHNOLOGY INDIA PVT . LTD., VS. DCIT, THROUGH THEIR ORDER DATED 25.9.2009 HAS TAKEN THE S AME VIEW THAT PARITY SHOULD BE MAINTAINED WHILE MAKING ADJUSTMENT S IN THE EXPORT TURNOVER FOR THE PURPOSE OF GIVING DEDUCTIONS U/S 1 0A. INNUMERABLE DECISIONS HAVE BEEN DELIVERED ON THIS PRINCIPLE IN THE CONTEXT OF SEC. 80HHC AS WELL. ITA NOS.64 & 65/B/10 3 4. THEREFORE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CLAIM MADE BY THE ASSESSEE IS ONLY LEGITIMATE AND, THEREF ORE, QUALIFIES TO BE ACCEPTED. ACCORDINGLY, WE DIRECT THE ASSESSING OFF ICER TO MAKE CORRESPONDING DEDUCTIONS IN THE TOTAL TURNOVER ALSO ; SO THAT THE ASSESSEE WILL GET A MARGINAL RELIEF IN THE QUANTUM OF DEDUCTION AVAILABLE U/S 10A. 5. IN RESULT, THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED ON TUESDAY THE 27TH DAY OF JULY, 2010, AT BANGALORE. SD/- SD/- (P MADHAVI DEVI) (DR. O.K NARAYANAN) JUDICIAL MEMBER VICE PRESIDENT VMS. COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF 7..GF, ITAT, NEW DELHI. BY ORD ER ASST. REGISTRAR, ITAT, BANGALORE.