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ITA 706/BANG/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2014 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-12-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 15-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JACINTA ZINIK VASHAI
• Assessee Lawyers: ANANTHA PADMANABHAN

Judgement Text

ITA.706/B/09 PAGE - 1 IN THE INCOME-TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A' BEFORE SHRI. K. P. T. THANGAL, VICE PRESIDENT AND SHRI. A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A.NO.706/BANG/2009 (ASSESSMENT YEAR : 2004-05 ) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -12(3), BANGALORE .. APPELLANT V. M/S. SOBHA RENAISSANCE INFORMATION TECHNOLOGY P. LT D., SRIT HOUSE, 113/1B, ITPL MAIN ROAD, KUNDALAHALLI, BANGALORE - 560 037 .. RESPONDENT APPELLANT BY : SMT. JACINTA ZINIK VASHAI RESPONDENT BY : SHRI. ANANTHA PADMANABHAN O R D E R PER K. P. T. THANGAL, VICE PRESIDENT : THIS APPEAL BY THE REVENUE IS FOR THE ASSESSMENT Y EAR 2004- 05. THE ONLY EFFECTIVE GROUND URGED BY THE REVENUE IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(A) IN DIREC TING THE ASSESSING OFFICER TO EXCLUDE THE EXPENDITURE INCURR ED TOWARDS FREIGHT, TELECOMMUNICATION CHARGES ETC., FROM THE TOTAL TURN OVER FOR THE PURPOSE OF COMPUTATION OF INCOME U/S.10A OF THE INC OME TAX ACT, 1961. ITA.706/B/09 PAGE - 2 2. THE ASSESSEE CLAIMED RS.2,64,83,178/- AS DEDUCTI ON U/S.10A. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD NOT DEDUCTED EXPENDITURE ON TELECOMMUNICATION, TRAVEL ETC., WHIL E WORKING OUT THE EXPORT TURNOVER. THE ASSESSING OFFICER HELD THE AS SESSEE HAS NOT FOLLOWED THE EXPLANATION 2(4) OF SECTION 10A. HE H ELD THE EXPORT TURNOVER DOES NOT INCLUDE THE FREIGHT, TELECOMMUNIC ATION CHARGES ETC., TO THE DELIVERY OF ARTICLE OR THING OR COMPUTER SOF TWARE OUTSIDE INDIA OR EXPENSES INCURRED IN FOREIGN EXCHANGE PROVIDING TECHNICAL SERVICES OUTSIDE INDIA. FOLLOWING THE DECISION OF THE TRIBU NAL, SPECIAL BENCH, CHENNAI IN THE CASE OF ITO V. M/S. SAKSOFT LTD., IN TIOL 187 ITAT MAD (SB), THE COMMISSIONER OF INCOME-TAX(A) DIRECTE D THE ASSESSING OFFICER TO ALLOW THE CLAIM WHEN THE ASSES SEE APPROACHED THE COMMISSIONER OF INCOME-TAX(A). AGGRIEVED BY TH E ABOVE ORDER OF THE COMMISSIONER OF INCOME-TAX(A), REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. SUFFICE TO SAY THAT THE COMMISSIONER OF INCOME-T AX(A) HAD RIGHTLY FOLLOWED THE DECISION OF THE ITAT, SPECIAL BENCH IN M/S. SAKSOFT LTD., (SUPRA) IN DIRECTING THE ASSESSING OF FICER TO ALLOW THE CLAIM OF THE ASSESSEE. THEREFORE, WE HAVE NO REASO N TO DISTURB THE ORDER OF THE FIRST APPELLATE AUTHORITY. ITA.706/B/09 PAGE - 3 4. IN THE RESULT, APPEAL BY THE REVENUE FAILS AND I T IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 11TH DAY OF DECEM BER, 2009. SD/- SD/- (A. MOHAN ALANKAMONY) (K. P. T. THANGAL) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE DATED : 11TH DECEMBER, 2009 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, NEW DELHI 7. GF, ITAT, BANGALORE