ACIT, Hyderabad V. M/s Integrated Software Solutions Pvt. Ltd., Hyderabad

ITA 955/HYD/2010

• Counselvise Citation: 95522514 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-03-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 24-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B V PRASAAD REDDY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.955/HYD/2010 ASSESSMENT YEAR 2004-05 ACIT, CIR - 2(1), HYDERABAD. VS M/S INTEGRATED SOFTWARE SOLUTIONS PVT. LTD., HYDERABAD. (PAN: AAACI 5817N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.V. PRASAAD REDDY RESPONDENT BY : NONE O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A)-III, HYDERABAD, DATED 1 5-4-2010 AND IT PERTAINS TO THE ASSESSMENT YEAR 2004-05. 2. THE GROUNDS RAISED BY THE REVENUE IN THIS APPEA L ARE AS UNDER:- 1. THE LEARNED CIT (A) OUGHT TO HAVE ACCEPTED THE DISALLOWANCE MADE BY THE AO IN THE COMPUTATION OF EXEMPTION U/S 10A. 2. THE LEARNED CIT (A) ERRED IN DIRECTING TO REDUCE THE BSNL CIRCUIT CHARGES & INTERNET LEASE CHARGES FROM THE T OTAL TURNOVER DESPITE THE FACT THAT THE SAID CHARGES ARE DEDUCTIBLE FROM EXPORT TURNOVER ONLY WHILE COMPUTIN G THE EXEMPTION U/S 10A OF THE ACT. ITA 955/HYD/2010 INTEGRATED SOFTWARE SOLUTIONS PVT. LTD., HYD. L.L 2 3. THE LEARNED CIT (A) OUGHT TO HAVE TAKEN THE VIEW OF THE SUPREME COURT DECISION GIVEN IN THE CASE OF K. RAVINDRANATHAN NAIR (2003) 262 ITR 669 WHEREIN IT W AS HELD THAT WHAT IS NOT INCLUDABLE IN THE EXPORT TURN OVER THAT SHOULD BE RESTRICTED TO EXPORT TURNOVER ONLY. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. DURING THE COURSE OF HEARING, NONE APPEARED ON BEHA LF OF THE ASSESSEE- RESPONDENT AND THEREFORE WE HAVE PROCEEDED TO DISPO SE OF THE MATTER EX PARTE AFTER HEARING THE LEARNED DR. 3. WE HAVE GONE THROUGH THE SUBMISSIONS OF THE LEA RNED DEPARTMENTAL REPRESENTATIVE AND THE RELEVANT MATERI AL AVAILABLE ON RECORD. WE FIND THAT THE ISSUE IS COVERED BY THE D ECISION OF THE CHENNAI SPECIAL BENCH IN THE CASE OF SAK SOFT LTD REPORTED IN 313 ITR 353 WHEREIN IT WAS HELD THAT WHEN CERTAIN EXPENSES ARE REDUCED FROM THE EXPORT TURNOVER, AN EQUAL AMOUNT SHOULD ALSO BE RED UCED FROM THE TOTAL TURNOVER. RESPECTFULLY FOLLOWING THE AFORESAID DE CISION OF THE TRIBUNAL, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT (A) IN DIRECTING THE ASSESSING OFFICER TO EXCLUDE THE AMOUNT OF EXPENDITURE INCURR ED ON INTERNET LEASE LINE AND TOWARDS BSNL CIRCUIT CHARGES FROM THE TOTA L TURNOVER, FOR THE PURPOSE OF COMPUTING THE ALLOWABLE DEDUCTION UNDER SECTION 10A OF THE ACT. THEREFORE, WE CONFIRM THE ORDER OF THE CIT ( A). THE DECISION RELIED ON BY THE REVENUE IN THE CASE OF K. RAVINDR ANATHAN NAIR VS. DY. CIT AND ANOTHER (262 ITR 669) IS DISTINGUISHABLE O N THE FACTS OF THE CASE AND THE SAME IS NOT APPLICABLE TO THE INSTANT CASED. IN VIEW OF THE ABOVE, THE GROUNDS RAISED BY THE REVENUE ARE REJEC TED. ITA 955/HYD/2010 INTEGRATED SOFTWARE SOLUTIONS PVT. LTD., HYD. L.L 3 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 15-9- 201 1. SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/- 15-9-2011. COPY FORWARDED TO: 1. ACIT, CIRCLE - 2(1), HYDERABAD. 2. M/S. INTEGRATED SOFTWARE SOLUTIONS PVT. LTD., 6 TH FLOOR, TRIVENI COMPLEX, ABIDS, HYDERABAD, 3. CIT(A) - II I, HYDERABAD. 4. CIT, AP, HYDERABAD. 5. THE D.R., ITAT, HYDERABAD. JMR*