M/s. Magna Infotech (P) Ltd., Hyderabad V. ACIT, Circle-16(2), Hyderabad

MA 48/HYD/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 1836 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 24-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B SATYANARAYANA MURTHY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER MISC. APPLN. NO.48/HYD/2014 (IN C.O. NO.6/HYD/09 IN ITA NO.287/HYD/09) : ASSESSMENT YEAR 2005 - 06 M/S. MAGNA INFOTECH (P) LTD., HYDERABAD ( PAN - AACCM 0914 A) V/S. ASSTT. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI B.SATYANARAYANA MURTHY RESPONDENT BY : SHRI SOLGY JOSE T.KOTTARAM DR DATE OF HEARING 04.04.2014 DATE OF PRONOUNCEMENT 25.04.2014 O R D E R PER SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER: BY THIS APPLICATION UNDER S.254(2) OF THE INCOME - AX AFT, 1961, THE ASSESSEE SEEKS RECTIFICATION/RECALL OF THE ORDER OF THIS TRIBUNAL DATED 20.12.2012 INSOFAR AS IT RELATED TO ASSESSEES CROSS OBJECTION NO.6/HYD/2009 IN ITA NO.287/HYD/2009, ON THE GROUND THAT CERTAIN MISTAKES APPARENT FROM RECORD HAVE CREPT INTO THE SAME. 2. WE HEARD BOTH SIDES AND PERUSED THE ORDER OF THIS TRIBUNAL DATED 20.12.2012 IN THE LIGHT OF THE AVERMENTS MADE BY THE ASSESSEE IN THE PRESENT APPLICATION FOR RECTIFICATION. 3. AT THE OUTSET, WE AGREE WITH THE SUBMISSION O F THE ASSESSEE IN THE PRESENT APPLI C A T ION THAT THERE IS A MISTAKE IN THE CAUSE - TITLE OF OUR ORDER DATED 20.12.2012 WHILE NOTING THE APPEARANCE ON BEHALF OF THE ASSESSEE, INASMUCH AS THE NAME OF ONE SHRI KISHORE KUMAR KABRA HAS BEEN NOTED, INSTEAD OF THE MA NO.48/HYD/2014 (IN CO NO.6/HYD/2009 IN ITA NO. 287 /HYD/20 09) M/S. MAGNA INFOTECH P. LTD., HYDERA BAD 2 NA ME OF SHRI B.SATYANARAYANA MURTHY, WHO IN FACT APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING ON APPEALS OF THE REVENUE AND THE CO OF THE ASSESSEE. WE ACCORDINGLY RECTIFY THE SAID MISTAKE AND DIRECT THAT IN THE CAUSE - TITLE OF THE ORDER DATED 20. 12.2012, IN THE APPEARANCE PART, AGAINST ASSESSEE BY, THE NAME SHRI B.SATYANARAYANA MURTHY SHOULD BE READ IN PLACE OF SHRI KISHORE KUMAR KABRA. WE DIRECT ACCORDINGLY. 4. THE NEXT MISTAKE IN THE ORDER OF THIS TRIBUNAL DATED 20.12.20 - 12 POINTED OUT BY THE ASSESSEE IS WITH REGARD TO THE RESULT OF THE CROSS OBJECTION OF THE ASSESSEE, WHICH HAS BEEN NOTED AS HAVING BEEN DISMISSED, WHEREAS IT SHOULD HAVE BEEN NOTED AS ALLOWED . WE FIND SOME MERIT IN THIS PLEA OF THE ASSESSEE AS WELL. THE DISPUTE IN THE APPEAL OF THE REVENUE AS WELL AS THE CROSS - OBJECTION OF THE ASSESSEE RELATES TO EXCLUSION OF INTERNET CHARGES FROM EXPORT TURNOVER . WHILE THE CIT(A) HAS DIRECTED THE ASSESSIN G OFFICER TO EXCLUDE 50% OF SUCH INTERNET CHARGES, THE REVENUE IN APPEAL CONTESTED THE RELIEF GRANTED BY THE CIT(A), AS AGAINST WHICH THE ASSESSEE IN ITS CROSS - OBJECTION PLEADED FOR EXCLUSION OF 100% OF THE INTERNET CHARGES, THUS CONTESTING THE DISALLOWAN CE SUSTAINED BY THE CIT(A) AS WELL. WHILE DEALING WITH THE APPEAL OF THE REVENUE THE TRIBUNAL IN ITS ORDER DATED 20.12.2012 ADDRESSED TO THE GRIEVANCE OF THE ASSESSEE AS WELL, AND DIRECTED THE ASSESSING OFFICER TO EXCLUDE 100% OF THE INTERNET CHARGES FROM THE EXPORT TURNOVER CLAIMED BY THE ASSESSEE, AND DELETING EVEN THE DISALLOWANCE SUSTAINED BY THE CIT(A). THUS, HAVING RESOLVED THE DISPUTE RAISED BY THE ASSESSEE WHILE DEALING WITH THE APPEAL OF THE REVENUE ITSELF, WHILE DEALING SEPARATELY THE CO OF THE ASSESSEE IN THE SUBSEQUENT PARAS, FOUND THE SAME TO BE INFRUCTUOUS AND AS SUCH TREATED THE SAME AS DISMISSED. INASMUCH AS THE RELIEF PRAYED FOR BY THE ASSESSEE IN THE CROSS - OBJECTION IS ALLOWED, IT IS EQUALLY CORRECT THAT THE CROSS OBJECTION OF THE ASSES SEE SHOULD BE TREATED AS ALLOWED. WE ACCORDINGLY RECTIFY OUR ORDER DATED 20.12.2012 BY MODIFYING PARAS 10 AND 11 OF OUR ORDER AS FOLLOWS - MA NO.48/HYD/2014 (IN CO NO.6/HYD/2009 IN ITA NO. 287 /HYD/20 09) M/S. MAGNA INFOTECH P. LTD., HYDERA BAD 3 10. SINCE WE HAVE MODIFIED THE ORDER OF THE CIT(A) IN AY 2005 - 06 BY WAY OF GIVING DIRECTION TO THE ASSESSING OFFICE R TO EXCLUDE 100% INTERNET CHARGES FROM THE EXPORT TURNOVER, THE CO FILED BY THE ASSESSEE STANDS ALLOWED. 11. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMISSED AND THE CO FILED BY THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, ASSESSEES MISCELL ANEOUS APPLICATION IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 25.04.2014 SD/ - SD/ - (CHANDRA POOJARI ) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/ - 25 TH APRIL , 2014 COPY FORWARDED TO: 1. M/S. MAGNA INFOTECH (P) LTD., 6 - 2 - 47, AC GUARDS, VETURU TOWERS, HYDERABAD 2 . ASSTT. COMMISSIONER OF INCOME - TAX CIRCLE 16(2), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) V HYDERABAD 4. COMMISSIONER OF INCOME - TAX I V , HYDERABAD 5 DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S