Appeal details
Counselvise Citation
75521114 RSA 2011
Assessee PAN
Bench
Appeal Number
Duration Of Justice
9 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-05-2012
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
15-05-2012
Assessment Year
2006-2007
Appeal Filed On
09-08-2011
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.755/B ANG/2011 (ASST. YEAR - 2006-07) M/S INTERWOVEN SOFTWARE SERVICES INDIA PVT. LTD., (FORMERLY KNOWN AS COMPONENT INSIGHTS INDIA PVT. LTD.,) NO.99-100, PRESTIGE TOWERS, 9 TH FLOOR, RESIDENCY ROAD, BANGALORE-25. . APPELLANT PAN NO.AAACI 4421 N. VS. THE INCOME-TAX OFFICER, WARD-11(2), BANGALORE. . RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI DEEPAK R.L, JCIT DATE OF HEARING : 15-05-2012 DATE OF PRONOUNCEMENT : 15-05-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) I AT ITA NO.755/B/11 2 BANGALORE DATED 24.05.2011. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME-TAX ACT, 1961. 2. THIS APPEAL WAS INITIALLY POSTED FOR HEARING ON 21.3.2012. HOWEVER, NOTICE WAS RETURNED UN-SERVED. THEREFORE, THE NOTICE WAS DIRECTED TO BE ISSUED THROUGH LEARNED DR. THE ACKN OWLEDGMENT OF SERVICE OF NOTICE HAS BEEN FILED BY THE DR ON EVEN DATE. THE SAME IS TAKEN ON RECORD. 3. AFTER HEARING THE LEARNED DR, THE ASSESSEES APP EAL IS DISPOSED OF AS UNDER. 4. IN THIS APPEAL, THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) HAS ERRED IN HOLDING THAT THE INTERNET CHARGES OF R S.9,79,653/- AND TRAVEL EXPENSES OF RS.15,56,354/- SHOULD BE EXCLUDE D FROM THE EXPORT TURNOVER BUT HAS FAILED TO GIVE ANY DIRECTION THAT THE SAME SHOULD ALSO BE EXCLUDED FROM THE TOTAL TURNOVER. IN SUPPORT O F ITS CONTENTION THAT THE EXPENSES WHICH ARE EXCLUDED FROM THE EXPORT TUR NOVER ARE TO BE EXCLUDED FROM THE TOTAL TURNOVER ALSO, IT PLACED RE LIANCE UPON THE FOLLOWING JUDGMENTS IN ITS GROUNDS OF APPEAL:- ITA NO.755/B/11 3 1) TATA ELXSI LTD. VS. ACIT (2008) 115 TTJ (BANG) 423 2) I GATE GLOBAL SOLUTIONS LTD. VS. ACIT (2008) 24 SOT 3 (BANG) (URO) 3) ACIT VS. INFOSYS TECHNOLOGIES LTD. (2008) 172 TAXMAN 134 (BANG) (MAG) 4) CIT VS. GEM PLUS JEWELLERY INDIA LTD. (2011) 330 ITR 0175 (BOM) 5. AFTER HEARING THE LEARNED DR, WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HO NBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI LTD. & OTHERS (2011- TIOL-684-HC-KAR-II), WHEREIN IT HAS BEEN HELD THAT IF ANY EXPENSES ARE TO BE EXCLUDED FROM THE EXPORT TURNOVER THEN TH E SAME SHOULD ALSO BE EXCLUDED FROM THE TOTAL TURNOVER. 6. IN VIEW OF THE SAME, WE DIRECT THE AO TO COMPUTE THE DEDUCTION U/S 10A OF THE INCOME-TAX ACT AFTER EXCLUDING ABOVE EXPENDITURE FROM BOTH THE EXPORT TURNOVER AND THE TOTAL TURNOVER. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA NO.755/B/11 4 ORDER PRONOUNCED IN THE OPEN COURT ON 15TH MAY, 2012. SD/- SD/- (N.K SAINI) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER VMS. BANGALORE DATED : 15/05/2012 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR, I TAT, BANGALORE.
