DCIT, Bangalore V. M/s Sitel Operating Corporation India Ltd., Bangalore

ITA 786/BANG/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0653 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 06-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SUNDARAJAN JT

Judgement Text

ITA.786/BANG/2012 1 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SHRI. N. BARATHVAJA SANKAR, VICE PRESIDENT AND SMT. N. V. VASUDEVAN, JUDICIAL MEMBER I.T.A NO.786/BANG/2012 (ASSESSMENT YEAR : 2007-08) DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 12(3), BANGALORE .. APPELLANT V. M/S. SITEL OPERATING CORPORATION INDIA LTD., NO.6/9, COOKE TOWN HIGH STREET, BANGALORE 560 005 .. RESPONDENT PAN : AACCC0408M APPELLANT BY : SHRI. A. SUNDARAJAN, JT.CIT RESPONDENT BY : NONE DATE OF HEARING : 28/02/2013 DATE OF PRONOUNCEMENT : 28/02/2013 O R D E R PER N. BARATHVAJA SANKAR, VICE PRESIDENT : THIS IS AN APPEAL PREFERRED BY THE REVENUE IN THE CASE OF M/S. SITEL OPERATING CORPORATION INDIA LTD., BANGALORE, FOR THE ASSESSMENT YEAR 2007-08, AGAINST THE APPELLATE ORDER DATED.15. 03.2012 OF COMMISSIONER OF INCOME-TAX (APPEALS) III, BANGALO RE. THE ONLY ISSUE BROUGHT BEFORE US FOR ADJUDICATION BY THE REV ENUE IS WHETHER THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN HOLDI NG THE EXPENSES ITA.786/BANG/2012 2 PAGE - 2 TOWARDS TELECOMMUNICATION CHARGES AND EXPENDITURE I NCURRED IN FOREIGN CURRENCY ATTRIBUTABLE TO DELIVERY OF SOFTWA RE HAS TO BE EXCLUDED FROM THE TOTAL TURNOVER AS WELL, FOR COMPU TATION OF DEDUCTION U/S.10A OF THE ACT. 02. AT THE TIME OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE. SINCE THIS APPEAL CAN BE DISPOSED OFF WITHOUT THE A SSISTANCE OF THE ASSESSEE/ITS REPRESENTATIVE, THE BENCH PROCEEDED TO DECIDE THE APPEAL ON MERITS. 03. AFTER HEARING THE LEARNED DR AND AFTER CONSIDER ING THE FACTS AND MATERIALS ON RECORD, WE FIND THAT THE REVENUE HAS T AKEN AMONG THE OTHER GROUNDS, THE FOLLOWING GROUND ALSO : 'THE COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT THE DECISION OF HON'BLE HIGH COURT OF KARNATAKA ON THE ISSUE OF COMPUTATION OF DEDUCTION U/S.10A BY EXCLUDING THE ABOVE EXPENSES FROM EXPORT TURNOVER AND TOTAL TURNO VER AS WELL, HAS NOT REACHED FINALITY IN VIEW OF THE PENDING DEP ARTMENT'S SLP BEFORE THE HON'BLE SUPREME COURT.' THIS POINT AT ISSUE HAS ALREADY BEEN CONSIDERED BY THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF TATA ELXI LTD. [TS-637-HC- 2011]. THOUGH THE REVENUE HAS TAKEN THE GROUND THA T THE DECISION OF ITA.786/BANG/2012 3 PAGE - 3 THE HON'BLE KARNATAKA HIGH COURT HAS NOT REACHED FI NALITY, NOTHING WAS BROUGHT ON RECORD TO SHOW THAT THE SAID DECISIO N HAS BEEN DISTURBED BY THE HON'BLE SUPREME COURT. IN SUCH FA CTS AND CIRCUMSTANCES, THE DECISION OF THE KARNATAKA HIGH C OURT IS HOLDING THE FIELD AS OF TODAY AND HENCE, WE DO NOT FIND ANY INF IRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), WHO HA S FOLLOWED THE SAID DECISION OF THE HON'BLE HIGH COURT IN ALLOWING THE ASSESSEE'S APPEAL. IN THIS VIEW OF THE MATTER, WE UPHOLD THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) AND DISMISS TH E REVENUE'S APPEAL. 04. IN THE RESULT, REVENUE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE END OF TH E HEARING ON 28.02.2013. SD/- SD/- (N. V. VASUDEVAN) (N. BARATHVAJA SANKA R) JUDICIAL MEMBER VICE PRESIDENT MCN* ITA.786/BANG/2012 4 PAGE - 4