DCIT, CHENNAI V. Saksoft Ltd., CHENNAI

ITA 865/CHNY/2015

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9846 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2015
• Court: TRIBUNAL
• Department Lawyers: JOE SEBASTIAN
• Assessee Lawyers: N VIJAY KUMAR
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.865/MDS/2015 / ASSESSMENT YEAR : 2009-10 THE DY. COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 6(1) CHENNAI VS. M/S SAKSOFT LTD NO.40, S.P INFOCITY MGR SALAI KANDANCHAVADI, PERUNGUDI CHENNAI 600 096 [PAN AADCS 9979E ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI JOE SEBASTIAN, CIT /RESPONDENT BY : SHRI N. VIJAY KUMAR, CA / DATE OF HEARING : 20 - 05 - 2015 ! / DATE OF PRONOUNCEMENT : 26 - 0 6 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-15, CHENN AI, DATED 20.1.2015 AND PERTAINS TO ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS COMPUTAT ION OF DEDUCTION U/S 10B OF THE ACT. ITA NO.865/15 :- 2 -: 3. SHRI JOE SEBASTIAN, LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE INCLUDED THE TELECOMMU NICATION CHARGES AND INSURANCE CHARGES IN THE EXPORT TURNOVER, HOWEV ER, EXCLUDED THE SAME FROM TOTAL TURNOVER. THE CIT(A), BY FOLLOWING THE ORDER OF THE SPECIAL BENCH OF THIS TRIBUNAL IN ASSESSEES OWN C ASE[2009] 30 SOT 55, EXCLUDED THE EXPENSES OF TELECOMMUNICATION CHAR GES AND INSURANCE CHARGES FROM THE EXPORT TURNOVER AND TOTA L TURNOVER ALSO. SINCE THE APPEAL FILED BY THE REVENUE AGAINST THE O RDER OF THE SPECIAL BENCH IS PENDING BEFORE THE HON'BLE MADRAS HIGH COU RT, THE REVENUE HAS FILED THIS APPEAL. 4. WE HEARD SHRI N. VIJAY KUMAR, LD. REPRESENTATIVE FO R THE ASSESSEE ALSO. 5. AS RIGHTLY SUBMITTED BY THE LD. DR, THE SPECIAL BEN CH OF THIS TRIBUNAL IN ASSESSEES OWN CASE HAS EXAMINED THIS ISSUE ELABORATELY AND FOUND THAT THE TELECOMMUNICATION CHARGES AND IN SURANCE CHARGES ARE TO BE EXCLUDED NOT ONLY FROM THE EXPORT TURNOVE R BUT ALSO FROM THE TOTAL TURNOVER. IN OTHER WORDS, THE NUMERATOR AND DENOMINATOR SHALL BE OF THE SAME FACTOR. THE CIT(A), BY FOLLOWING THE O RDER OF THE SPECIAL BENCH IN ASSESSEES OWN CASE, HAS DIRECTED THE ASS ESSING OFFICER TO EXCLUDE THE TELECOMMUNICATION CHARGES AND INSURANCE CHARGES FROM THE EXPORT TURNOVER AND TOTAL TURNOVER. MERE PENDE NCY OF REVENUES APPEAL BEFORE THE HON'BLE MADRAS HIGH COURT DOES NO T FORM A VALID ITA NO.865/15 :- 3 -: GROUND TO ADOPT A DIFFERENT VIEW. IT IS NOT THE C ASE OF THE REVENUE THAT THE HON'BLE MADRAS HIGH COURT STAYED THE ORDER OF THE SPECIAL BENCH. IN THOSE CIRCUMSTANCES, WE DO NOT FIND ANY I NFIRMITY IN THE ORDER OF THE CIT(A). ACCORDINGLY, THE SAME IS CONF IRMED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 26 TH JUNE, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF