M/s. Steer Engineering Private Limited, Bengaluru V. Additional Commissioner of Income-tax, Range-12, Bengaluru

MA 31/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6779 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: SHRI NARENDRA JAIN
• Keywords: Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P NO.31/BANG/2020 [IN ITA NO.2070/BANG/2018] ASSESSMENT YEAR : 2010 11 M/S STEER ENGINEERING PVT. LTD., NO.290, 4 TH MAIN, 4 TH PHASE, PEENYA INDUSTRIAL AREA, NAGWARA, BENGALURU-560 058. PAN AABCS 8840 E VS. THE ADDL. COMMISSIONER OF INCOME TAX , RANGE-12, BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI SHRI NARENDRA JAIN, C.A RESPONDENT BY : SHRI PRIYADARSHI MISHRA, JCIT (DR) DATE OF HEARING : 04-09-2020 DATE OF PRONOUNCEMENT : 14-09-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT MISCELLANEOUS PETITION HAS BEEN FILED BY AS SESSEE SEEKING TO RECTIFY FOLLOWING MISTAKES APPARENT FROM RECORD IN COMMON ORDER PASSED BY THIS TRIBUNAL DATED 23/10/2019. 1. IT WAS SUBMITTED THAT GROUNDS 3(II) AND 3(III) IS ADJUDICATED BY FOLLOWING DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF CIT VS.TATA ELXSI LTD. , REPORTED IN 349 ITR 98 . HE PAGE 2 OF 4 MP NO.31/BANG/2020 SUBMITTED THAT, LD.AR RELIED ON DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF CIT VS. INFOSYS TECHNOLOGIES LTD. , REPORTED IN (2012) 18 TAXMANN.COM 169, WHEREIN IT WAS HELD THAT GAIN ARISING ON ACCOUNT OF FOREIGN EXCHA NGE FLUCTUATION HAVING DIRECT NEXUS WITH EXPORT SALES O F ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S.10A OF THE ACT . 2. LD.SR.DR PLACED RELIANCE ON VIEW TAKEN BY THIS TRIBUNAL REPRODUCED IN PARA 6 OF IMPUGNED ORDER. 3. WE HAVE PERUSED RECORDS AND NOTE THAT, LD. AR HA D RELIED ON DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF CIT VS. INFOSYS TECHNOLOGIES LTD. (SUPRA) IN RESPECT OF GROUND 3(II) AND 3(III). 4. ACCORDINGLY WE RECALL ORDER PASSED BY THIS TRIBUNAL DATED 23/10/2019 TO THE EXTENT FOR ADJUDICATING GROUNDS 3 (II) AND 3(III), THAT READS AS UNDER: 3(II) CONCLUDING THAT FOREIGN EXCHANGE GAIN EARNED FROM EOU UNIT IS NOT PART OF PROFIT OF THE UNDERTAKING AND THEREB Y REDUCING DEDUCTION U/S.10B 3(III) NOT APPRECIATING THAT UNDER SIMILAR FACTS A ND CIRCUMSTANCES OF THE CASE, THE HONBLE KARNATAKA HIGH COURT HELD THAT FOREIGN EXCHANGE GAIN SHOULD FORM PART OF PROFITS OF THE BS INESS, EXPORT TURNOVER AND TOTAL TURNOVER. 5. NEXT ISSUE RAISED BY LD.AR IS THAT THIS TRIBUNAL WHILE INADVERTENTLY MISSED ADJUDICATING GROUND 4(II). 6. WE HAVE PERUSED OUR RECORDS AND NOTE THAT SUBMIS SION BY LD.AR IS CORRECT. PAGE 3 OF 4 MP NO.31/BANG/2020 7. ACCORDINGLY WE RECALL ORDER PASSED BY THIS TRIBUNAL DATED 23/10/2019 TO THE EXTENT FOR ADJUDICATING GROUNDS 4 (II), THAT READS AS UNDER: 4(II) DISSALLOWING PROFESSIONAL FEES AND CONSULTAN CY CHARGES OF RS.1,20,820/- INCURRED TOWARDS ACQUISITION OF BUSI NESS ON THE FOUND THAT IT IS CAPITAL EXPENDITURE. ON THE FACT A ND CIRCUMSTANCES OF THE CASE THE ADDITION IS BAD IN LAW LIABLE TO BE QUASHED. 8. WE DIRECT REGISTRY TO FIX THE APPEAL FOR HEARING FOR LIMITED PURPOSES OF ADJUDICATING GROUND NO. 3(II)-(III) AND 4(II) IN ITA NO.2070/BANG/2018 FOR ASSESSMENT YEAR 2010-11. ACCORDINGLY THE MISCELLANEOUS PETITION FILED BY ASS ESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPT, 2020 SD/- SD/- (B. R. BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 14 TH SEPT, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE PAGE 4 OF 4 MP NO.31/BANG/2020 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -09-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -09-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -09-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -09-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -09-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -09-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -09-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS