ACIT, Bangalore V. M/s Magma Design Automation India Pvt. Ltd., Bangalore

MA 261/BANG/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5971 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-12-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 11-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBERAN D SHRI LALIT KUMAR, JUDICIAL MEMBER MP NO. 261/BANG/2017 (IN IT(TP)A NO . 1 74 /BANG/201 2 ) ASSESSMENT YEAR : 20 05 - 06 THE ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 12 (1), BANGALORE. VS. M/S. MAGMA DESIGN AUTOMATION INDIA PVT. LTD., PRESTIGE TERMINUS JUPITER (2A) BLOCK, 6 TH FLOOR, SARJAPUR MARATHHALI RING ROAD, VARTHUR HOBLI,, BOREWELL ROAD, WHITEFIELD ROAD, WHITEFIELD, BANGALORE 560 066. PAN: AADCM4542M APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : S MT. PADMAMEENAKSHI , JCIT (DR) DATE OF HEARING : 08 . 1 2 .201 7 DATE OF PRONOUNCEMENT : 08 .1 2 .2017 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER; THIS M.P. IS FILED BY THE REVENUE POINTING OUT ONE APPARENT MISTAKE IN THE IMPUGNED TRIBUNAL ORDER AND THE MISTAKE POINTED OUT IS THIS THAT GROUND NO. 2 OF THE APPEAL OF THE REVENUE REGARDING MISTAKE IN C OMPUTATION OF THE DEDUCTION ALLOWABLE U/S 10A WAS NOT DECIDED. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE BUT SINC E, THIS IS THE ONLY ALLEGED MISTAKE THAT THE GROUND NO. 2 OF THE APPEAL OF REVE NUE WAS NOT DECIDED BY THE TRIBUNAL AS PER THE IMPUGNED TRIBUNAL ORDER AND SIN CE WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT O F HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD, 349 I TR 98, THIS M.P. FILED BY THE REVENUE WAS HEARD EX PARTE QUA THE ASSESSEE. LEARNE D DR OF THE REVENUE SUBMITTED THAT THIS GROUND SHOULD BE DECIDED. MP NO. 261/BANG/2017 (IN IT(TP)A NO. 174/BANG/2012) PAGE 2 OF 3 3. WE HAVE GONE THROUGH THE IMPUGNED TRIBUNAL ORDER AND FIND THAT IN FACT, GROUND NO. 2 OF THE APPEAL OF THE REVENUE WAS NOT DECIDED AS PER THIS TRIBUNAL ORDER. WE ADMIT THAT THIS IS AN APPARENT MISTAKE AND RECTI FY THE SAME BY DECIDING THIS GROUND. 4. AS PER THIS GROUND, THIS IS THE GRIEVANCE OF THE REVENUE THAT AN AMOUNT OF RS. 79,40,977/- REDUCED BY THE AO FROM EXPORT TURNOVER TO COMPUTE DEDUCTION ALLOWABLE U/S 10A SHOULD NOT BE REDUCED FROM TOTAL TURNOVER ALSO AS HAD BEEN DIRECTED BY CIT (A). AS PER THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI LTD. (SUPRA), IT WAS HELD THAT TOTAL TURNOVER IS SUM TOTAL OF EXPORT TURNOVER AND DOMESTIC TURNOVER AND THEREFORE, IF AN AMOUNT IS REDUCED FROM EXPORT TURNOVER THAN THE TOTAL TURN OVER ALSO GETS REDUCED BY THE SAME AMOUNT. SINCE, THE DIRECTION OF CIT (A) IS IN LINE WITH THIS JUDGMENT, WE REJECT GROUND NO. 2 RAISED BY THE REVENUE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE MP FILED BY THE REVENUE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (LALIT KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 8 TH DECEMBER, 2017. /MS/ MP NO. 261/BANG/2017 (IN IT(TP)A NO. 174/BANG/2012) PAGE 3 OF 3 COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.