DCIT, Hyderabad V. M/s P & J Cretechem Pvt. Limited, Secunderabad

ITA 999/HYD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 6354 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 09-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: SURESH KUMAR RATHI
• Section: 10B; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.999/HYD/2010 ASSESSMENT 2005-06 THE DCIT, CIRCLE 16(3), HYDERABAD VS M/S P&J CRETECHEM (P) LTD., SECUNDERABAD (PAN AA CCP 9226 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E. SUNIL BABU RESPONDENT BY : SHRI SURESH KUMAR RATHI O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) V, HYDERABAD DATED 29.1 2.2008 AND PERTAINS TO THE ASSESSMENT 2005-06. 2. THE ISSUE IN THIS APPEAL IS WITH REGARD TO EXCLU SION OF FREIGHT CHARGES AND INSURANCE FROM THE TOTAL TURNOVER WHILE COMPUTING DEDUCTION U/S 10B. 2.1 AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OP INION THAT THE ISSUE RAISED HEREIN HAS BEEN SQUARELY COVERED BY TH E ORDER OF THIS TRIBUNAL (SPECIAL BENCH) IN THE CASE OF ITO VS. SAK SOFT LTD (313 ITR (AT) 353) WHEREIN IT WAS HELD BY THE HONBLE ITAT, THAT PARIT Y TO BE MAINTAINED WITH EXPORT TURNOVER. EXPENSES ON FREIGHT TELECOMMUNICA TION CHARGES OR INSURANCE ATTRIBUTABLE TO DELIVERY OF ARTICLES OR T HINGS OF COMPUTER SOFTWARE, REQUIRED TO BE EXCLUDED FROM EXPORT TURNO VER, ARE ALSO TO BE EXCLUDED FROM TOTAL TURNOVER FOR COMPUTING EXEMPTIO N U/S 10B. IN THIS DECISION, THE HONBLE ITAT FURTHER HELD THAT WHATEV ER IS EXCLUDED FROM THE EXPORT TURNOVER, SHOULD ALSO BE EXCLUDED FROM THE T OTAL TURNOVER FOR THE PURPOSE OF SECTION 10A. THE OBSERVATIONS MADE BY T HE HONBLE ITAT IN THIS REGARD AT PAGE NO.397 398 OF THE SAID DECISION AR E REPRODUCED AS UNDER: ITA NO.999/HYD/2010 M/S CRETECHEM (P) LTD., SECUNDERABAD. 2 2 THE PARITIES HAVE COMPLIED SEVERAL ORDERS OF THE C HENNAI AND BANGALORE BENCHES OF THE TRIBUNAL IN WHICH IT HAS B EEN HELD THAT WHATEVER IS EXCLUDED FROM THE EXPORT TURNOVER SHOUL D ALSO BE EXCLUDED FROM THE TOTAL TURNOVER FOR THE PURPOSE OF SECTION 10A & 10B OF THE ACT. WE ARE GENERALLY IN AGREEMENT WITH THE CONCLUSION REACHED IN THESE ORDERS, WHICH IS NOT BEING DEALT W ITH INDIVIDUALLY 3. RESPECTFULLY, FOLLOWING THE SAME RATIO AS LAI D DOWN IN THE ORDER OF THIS TRIBUNAL, WE DISMISS THE GROUNDS TAKEN BY T HE REVENUE. 4. IN THE RESULT, THE REVENUE APPEAL IN ITA NO.9 99/HYD/2010 STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 12.10.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 12 TH OCTOBER, 2010 COPY FORWARDED TO: 1. THE DCIT, CIRCLE 16(3), HYDERABAD 2. M/S P&J CRETECHEM (P) LTD., 318 SWAPNALOK COMPLE X, 92/93, SD ROAD, SECUNDERABAD 3. CIT(A)-V HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP