ITO, Bangalore V. M/s Misys Software Solutions (India) Pvt. Ltd., Bangalore

ITA 974/BANG/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1534 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 12-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA.974/BANG/2010 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE DR. O. K. NARAYANAN, VICE PRESIDENT AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A NO.974/BANG/2010 (ASSESSMENT YEAR : 2004-05) INCOME-TAX OFFICER, WARD -12(1), BANGALORE .. APPELLANT V. M/S. MISYS SOFTWARE SOLUTION (INDIA) P. LTD., EAGLE RIDGE, EMBASSY GOLD LINK, BUSINESS PARK, OFF INTERMEDIATE RING ROAD/DOMLUR, BANGALORE 560 071 .. RESPONDENT APPELLANT BY : SHRI. HARSHA PRAKASH, COMMISSIONER O F INCOME-TAX-II RESPONDENT BY : SHRI. AMIT KUMAR, CHARTERED ACCOUN TANT O R D E R PER DR. O. K. NARAYANAN, VICE PRESIDENT : THIS APPEAL IS FILED BY THE REVENUE. ASSESSMENT Y EAR IS 2004- 05. THE APPEAL IS DIRECTED AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME-TAX(A)-III AT BANGALORE, DATED.26.04.2011 AN D ARISES OUT OF THE ASSESSMENT COMPLETED U/S.143(3) OF THE IT ACT, 1961 . 2. THE ONLY GROUND RAISED BY THE REVENUE IN THIS AP PEAL IS THAT THE COMMISSIONER OF INCOME-TAX(A) HAS ERRED IN LAW IN D IRECTING THE ASSESSING OFFICER TO EXCLUDE LEASE LINE CHARGES AND TRAVELING CHARGES ITA.974/BANG/2010 PAGE - 2 INCURRED IN FOREIGN CURRENCY AGGREGATING TO ` .3,06,35,366/- FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTING DEDUCTI ON U/S.10A OF THE IT ACT, 1961. 3. THE ASSESSING OFFICER OUGHT TO HAVE EXCLUDED THE DESIGNATED AMOUNTS FROM THE TOTAL TURNOVER AS WELL, WHEN HE WA S ADJUSTING THE EXPORT TURNOVER. ANY CHANGE MADE IN THE NOMINATOR SHOULD BE MADE IN THE DENOMINATOR ALSO. THIS POSITION HAS RECENTL Y BEEN CONFIRMED BY THE HON'BLE BOMBAY HIGH COURT IN 330 ITR175. THERE FORE, WE FIND THAT THE COMMISSIONER OF INCOME-TAX(A) HAS PASSED A CORRECT ORDER. 4. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 28TH FEBRUARY, 2011, AT BANGALORE. SD/- SD/- (SMT. P. MADHAVI DEVI) (DR. O. K. NARAYANAN) JUDICIAL MEMBER VICE PRESIDENT