DCIT, V. Subex Technologies Ltd.,

ITA 913/BANG/2013

• Counselvise Citation: 91321114 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N PRAKASH
• Assessee Lawyers: CHYTANYA K K
• Section: 115JB; 90

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH A, BANGALORE BEFORE SHRI N.V.VASUDEVAN, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER ITA NO.913(B)/2013 (ASSESSMENT YEAR : 2009-2010) THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-12(3), BANGALORE-560 001 APPELLANT VS M/S SUBEX TECHNOLOGY LTD., 999/1, 9 TH MAIN HSR LAYOUT, SECTOR-7, BANGALORE-560102 APPELLANT PAN NO.AA1CS9433Q REVENUE BY : SHRI T.N.PRAKASH, JCIT ASSESSEE BY : SHRI CHYTANYA, K.K. ADVOCATE DATE OF HEARING : 30-09-2015 DATE OF PRONOUNCEMENT : 01 -10-2015 O R D E R PER SHRI ABRAHAM P GEORGE, AM: IN THIS APPEAL FILED BY THE REVENUE ITS GRIEVANCES IS AGAINST ALLOWING OF RELIEF TO ASSESSEE U/S 90 OF THE IT ACT, WHILE C OMPUTING TAX LIABILITY UNDER THE PROVISIONS OF SEC.115JB OF THE IT ACT, 19 61. 2. LEARNED DR SUBMITTED THAT TAXES U/S 115JB OF THE ACT, STOOD ON A DIFFERENT FOOTING THAN THE REGULAR TAX COMPUTED U NDER OTHER PROVISIONS OF ITA NO.913(B)/13 2 THE ACT. THEREFORE, ACCORDING TO HIM, REBATE FOR TA XES PAID IN A FOREIGN COUNTRY COULD NOT BE GRANTED TO THE ASSESSEE. 3. PER CONTRA, LEARNED AR SUPPORTED THE ORDER OF TH E CIT(A). HE ALSO RELIED ON A DECISION OF CO-ORDINATE BENCH IN THE CA SE OF ACIT VS L & T LTD., IN ITA NO.4499/MUM/2008/ DATED 22-04-2009. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL CONTENTIONS. THE QUESTION IS WHETHER CREDIT U/S 90 OF THE IT ACT, WO ULD BE GIVEN ON TAX LIABILITY UNDER MAT PROVISIONS OF THE ACT. WE FIND THAT A VERY SAME ISSUE HAD COME UP BEFORE THE MUMBAI BENCH OF THE TRIBUNAL IN THE CASE OF ACIT VS L & T LTD., (SUPRA). 5. CO-ORDINATE NOTED THAT THE INCOME ON WHICH TAX H AS BEEN PAID ABROAD WAS INCLUDED IN BOOK PROFIT FOR THE PURPOS E OF SEC.115JA. IT WAS HELD THAT ONCE TAXABLE INCOME WAS DETERMINED EITHER UNDER THE NORMAL PROVISIONS OF THE ACT OR AS PER SEC.115JB, SUBSEQUE NT PORTION RELATING TO COMPUTATION OF THE TAX HAS TO BE GOVERNED BY THE NO RMAL PROVISION OF THE ACT. IT ALSO HELD THAT THERE WAS NO PROVISION IN T HE ACT, DEBARRING GRANTING OF CREDIT FOR TAX PAID ABROAD IN CASE INCOME IS COM PUTED U/S 115JA. IT WAS FURTHER HELD THAT THE ASSESSEE COULD NOT BE DENIED THE SET OFF OF TAX RELIEF AGAINST THE TAX LIABILITY DETERMINED U/S 115JA. ITA NO.913(B)/13 3 6. CIT(A) HAD GIVEN RELIEF TO THE ASSESSEE FOR THE VERY SAME REASONS MENTIONED BY CO-ORDINATE BENCH IN THE CASE OF L &T LTD (SUPRA). WE DO NOT FIND ANY GOOD REASON TO INTERFERE 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 1 ST OCTOBER, 2015. SD/- SD/- ( N.V.VASUDEVAN) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER P L A C E : BANGALORE D A T E D : 01-10-2015 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER AR, ITAT, BANGALORE