ACIT, Bangalore V. M/s Subex Limited, Bangalore

ITA 89/BANG/2011

• Counselvise Citation: 8921114 RSA 2011
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 01-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL BANGALORE BENCH A, BANGALORE BEFORE SHRI N.K.SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER I.T.A. NO.142(BANG.)/2011 (ASSESSMENT YEAR : 2006-07) THE DEPUTY COMMISSIONER OF INCOME-TAX, (INTERNATIONAL TAXATION), CIRCLE-II(1), 6 TH FLOOR, R.P.BHAVAN, NRUPATHUNGA ROAD, BANGALORE APPELLANT VS M/S SAMSUNG ELECTRONICS CO. LTD. INDIA SOFTWARE OPERATIONS, BAGMANE LAKEVIEW, BAGMANE TECHPARK, C.V.RAMANNAGAR, BYRASANDRA, BANGALORE. PAN NO.AACCS8960N RESPONDEN T REVENUE BY : SHRI ETWA MUNDA, CIT-III ASSESSEE BY : SHRI PRAKASH HEGDE,CA DATE OF HEARING : 31-10 -2011 DATE OF PRONOUNCEMENT : 04- 11-011 O R D E R PER SMT P. MADHAVI DEVI, JM ; THIS APPEAL BY THE REVENUE RELATES TO ASSESSMENT YE AR 2006-07. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL. 1.THE LEARNED CIT(A) HAS ERRED IN PARTLY ALLOWING THE APPEAL O THE ASSESSEE WHICH IS OPPOSED TO LAW, EQUITY, FACTS AND CIRCUMSTANCES OF THE CASE. ITA.NO.142(B)/11 2 2. THE LEARNED CIT(A) ERRED IN HOLDING THAT THE DISALLOWANCE OF THE EXPENSES OF RS.11,18,23,722/- NOT ONLY FROM THE EXPORT TURNOVER BUT ALSO FROM THE TOTAL TURNOVER. 3. THE LEARNED CIT(A) ERRED IN HOLDING THAT THE PRESENT DECISION HAS ALSO BEEN UPHELD BY THE HONBLE CHENNAI BENCH IN THE CASE OF SAK SOFT LTD., 313 ITR 353(AT) WHICH IS NOT A JURISDICTIONAL BENCH. 4. THE CIT(A) ERRED IN NOT APPRECIATING THE FACT THAT SEC.10A IS A SELF CONTAINED CODE THEREFORE, PROVISIONS OF SEC.80HHE ARE NOT APPLICABLE IN THIS CASE. 2. THOUGH, LEARNED DR SUPPORTED THE ORDER OF THE AO, LEARNED COUNSEL FOR THE ASSESSEE ON THE OTHER H AND, SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF T HE ASSESSEE BY THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNA L AT CHENNAI IN THE CASE OF ITO VS M/S SAK SOFT LTD., R EPORTED IN 313 ITR 353(SB) CHENNAI AND DECISIONS OF THE HONBL E BOMBAY HIGH COURT IN THE CASE OF M/S GEM PLUS JEWEL LERY INDIA LTD., 2010-TIOL-456-HC-MUMBAI-IT AND ALSO OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS M/S QUALITY ENGINEERING& SOFTWARE TECHNOLOGIES PVT. LTD .,AND OTHERS DATED 30-08-2011. TAKING THE ABOVE SUBMISSI ONS INTO CONSIDERATION, WE HOLD THAT THE ABOVE ISSUE RAISED BY THE REVENUE BEFORE US WAS CONSIDERED BY THE CIT(A) IN G IVING RELIEF ITA.NO.142(B)/11 3 TO THE ASSESSEE. IN VIEW OF THE SAME, THERE IS NO M ERIT IN THE REVENUES APPEAL AND IT IS ACCORDINGLY DISMISSED. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 4 TH NOVEMBER, 2011. SD/- SD/- ( N.K.SAINI) (SMT. P . MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: BANGALORE DATED: 04-11-2011 AM* COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3. CIT(A) 4. CIT 5. DR 6. GF(BLORE) BY ORDER AR, ITAT, BANGALORE