TNQ Books & Journals Private limited, CHENNAI V. ACIT, CHENNAI

ITA 758/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81209 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-09-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: V RA VICHANDRAN
• Section: 143(3); 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! # $ , % & BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO. 758/MDS/2014 ( / ASSESSMENT YEAR: 2009-10) M/S. TNQ BOOKS & JOURNALS PVT. LTD. NO.4/600, 4/197, PHASE II VSI ESTATE, KOTTIVAKKAM, CHENNAI-600 041. VS THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-III(2), CHENNAI. PAN: AABCT3050B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. V.RAVICHANDRAN, .C.A /RESPONDENT BY : MR. S.DAS GUPTA, JCIT / DATE OF HEARING : 8 TH SEPTEMBER, 2014 /DATE OF PRONOUNCEMENT : 24 TH OCTOBER, 2014 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX, (APPEALS)-III, C HENNAI DATED 28.11.2013 FOR THE ASSESSMENT YEAR 2009-10 A RISING OUT OF THE ORDER PASSED UNDER SECTION 143(3) OF THE ACT. 2. THERE IS ONLY ONE ISSUE IN THE GROUNDS OF APPEAL OF THE ASSESSEE AND THIS GROUND IS RAISED AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME TAX (APPEALS) IN NOT DEALING WITH THE GROUND RAISED BEFORE HIM ON THE ACTION OF THE A SSESSING 2 ITA NO.758/MDS/2014 OFFICER IN DEDUCTING EXPENDITURE ON THE LEASED TELECOMMUNICATION LINE AND OTHER EXPENSES INCURRED IN FOREIGN EXCHANGE FROM EXPORT TURNOVER IN COMPUTING THE DEDUCTION UNDER SECTION 10B OF THE ACT. 3. COUNSEL FOR THE ASSESSEE SUBMITS THAT COMMISSION ER OF INCOME TAX (APPEALS) DID NOT DISPOSE OFF GROUND NO. 9 OF THE GROUNDS OF APPEAL RAISED BEFORE HIM RELATING TO EXC LUSION OF LEASED TELECOMMUNICATION LINE AND VARIOUS EXPENDITU RE INCURRED IN FOREIGN EXCHANGE FROM EXPORT TURNOVER O N THE GROUND THAT EXPENDITURE WAS INCURRED IN FOREIGN CUR RENCY IN RENDERING TECHNICAL SERVICES OUTSIDE INDIA. COUNSEL SUBMITS THAT THIS ISSUE HAS BEEN CONSIDERED BY THE SPECIAL BENCH OF THE TRIBUNAL IN ITO VS. SAK SOFT LTD., WHEREIN THE SPECIAL BENCH HELD THAT SUCH EXPENDITURE SHOULD BE EXCLUDED FROM THE TOTAL TURNOVER AS WELL FOR THE PURPOSE OF COMPU TING DEDUCTION UNDER SECTION 10B OF THE ACT. 4. DEPARTMENTAL REPRESENTATIVE SUBMITS THAT COMMISSIONER OF INCOME TAX (APPEALS) IN FACT SET AS IDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER TO CONS IDER THE 3 ITA NO.758/MDS/2014 CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT IN CASE DEDUCTION UNDER SECTION 10B IS NOT ALLOWABLE, SINCE THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10B ORIGIN ALLY AND ALTERNATIVELY UNDER SECTION 10A OF THE ACT. DEPART MENTAL REPRESENTATIVE SUBMITS THAT COMMISSIONER OF INCOME TAX (APPEALS) DIRECTED THE ASSESSING OFFICER TO VERIFY THE CLAIM AND CONDITIONS LAID DOWN UNDER SECTION 10A OF THE A CT AND ALLOW THE CLAIM OF THE ASSESSEE UNDER SECTION 10A O F THE ACT. 5. HEARD BOTH SIDES. ON GOING THROUGH ORDERS OF LO WER AUTHORITIES AND THE DECISION RELIED ON, WE FIND TH AT ASSESSEE ORIGINALLY MADE CLAIM UNDER SECTION 10B AND AN ALT ERNATIVE CLAIM WAS ALSO MADE UNDER SECTION 10A OF THE ACT DU RING THE ASSESSMENT PROCEEDINGS. THE COMMISSIONER OF INCOME TAX (APPEALS) DIRECTED THE ASSESSING OFFICER TO VERIFY CONDITIONS AS PER SECTION 10A AND ALLOW THE CLAIM OF THE ASSES SEE. SINCE THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ALREADY DIRECTED THE ASSESSING OFFICER TO VERIFY TH E CLAIM OF THE ASSESSEE AND ALLOW DEDUCTION UNDER SECTION 10A, WE REMIT THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THIS ISSUE ALSO AFRESH IN ACCORDANCE WITH LA W KEEPING 4 ITA NO.758/MDS/2014 IN VIEW THE DECISION OF SPECIAL BENCH OF THIS TRIBU NAL IN THE CASE OF ITO VS. SAK SOFT LTD.[30 SOT 55 (CHENNAI)(S B)] RELIED ON BY THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 24 TH DAY OF OCTOBER, 2014 AT CHENNAI. SD/- SD/- ( . ) ( ( *+ ) ( A.MOHAN ALANKAMONY ) ( CHALLA NAGEND RA PRASAD ) - / ACCOUNTANT MEMBER * - / JUDICIAL MEMBER * /CHENNAI, / /DATED 24 TH OCTOBER, 2014 SOMU 12 32 /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 4 () /CIT(A) 4. 4 /CIT 5. 2 7 /DR 6. /GF .