DCIT, Bangalore V. M/s Kalki Communications Tech Ltd., Bangalore

ITA 795/BANG/2015

• Counselvise Citation: 79521114 RSA 2015
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 26-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI JT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ITA NO.795/BANG/2015 ASSESSMENT YEAR : 2011-12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(1), BANGALORE. VS. M/S. KALKI COMMUNICATIONS TECH LTD., 147, 2 ND FLOOR, ANANTHPUSHPA BUILDING, 5 TH MAIN ROAD, 7 TH SECTOR, HSR LAYOUT, BANGALORE 560 034. PAN: AABCL 2059D APPELLANT RESPONDENT APPELLANT BY : DR. P.K. SRIHARI, JT. CIT (DR) RESPONDENT BY : NONE DATE OF HEARING : 19.10.2015 DATE OF PRONOUNCEMENT : 28.10.2015 O R D E R PER ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER DATED 11.03.2015 OF THE CIT(APPEALS)-4, BANGALORE RELATIN G TO ASSESSMENT YEAR 2011-12. ITA NO.795/BANG/2015 PAGE 2 OF 3 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF SOFTWARE DEVELOPMENT CONSULTANCY. 3. BEFORE THE CIT(APPEALS), THE ASSESSEE OBJECTED T O THE CURTAILMENT OF DEDUCTION U/S. 10A OF THE ACT ON ACCOUNT OF ADJUSTM ENT OF EXPORT TURNOVER BY THE ASSESSING OFFICER. THE AO EXCLUDED THE VALU E OF TELECOMMUNICATION AND TRAVEL EXPENSES FROM THE EXPORT TURNOVER. THE ASSESSEE CONTENDED THAT IT SHOULD BE REDUCED FROM THE TOTAL TURNOVER A LSO. 4. THE LD. CIT(APPEALS) HELD THAT THE ISSUE IS COVE RED BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CAS E OF CIT V. TATA ELXSI LTD., 349 ITR 98 (KAR) WHICH IS A BINDING PRECEDENT AND RESPECTFULLY FOLL OWING THE SAME, HE DIRECTED THE AO TO FOLLOW THE RATIO LA ID DOWN IN THE AFORESAID JUDGMENT WHILE COMPUTING DEDUCTION U/S. 10A OF THE ACT. 5. AGGRIEVED, THE REVENUE HAS RAISED THE FOLLOWING EFFECTIVE GROUND:- 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DIRECTING THE AO TO FOLLOW THE RATIO L AID DOWN BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. TAT A ELXSI LTD. (349 ITR 98) (KAR) WHILE COMPUTING DEDUCTION U/S. 1 0A, AS THE DEPARTMENT HAS PREFERRED A SLP BEFORE THE HONBLE S UPREME COURT ON THIS ISSUE, WHICH IS PENDING ADJUDICATION. 6. WE FIND THAT THE REVENUE HAS RAISED A GROUND THA T IT HAS PREFERRED A SLP BEFORE THE HONBLE SUPREME COURT ON THIS ISSUE, WHICH IS PENDING FOR ADJUDICATION. WE CONFIRM THE ORDER OF LD. CIT(APP EALS) IN FOLLOWING THE ITA NO.795/BANG/2015 PAGE 3 OF 3 JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF TATA ELXSI LTD. (SUPRA) WHICH IS A BINDING PRECEDENT. 7. IN THE RESULT, THE APPEAL BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF OCTOBER, 2015. SD/- SD/- ( ABRAHAM P. GEORGE ) (ASHA VIJAYARAGHAVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 28 TH OCTOBER, 2015. /D S/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.