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Income Tax Appellate Tribunal, DELHI BENCH “Friday”: NEW DELHI
Before: SHRI R.K. PANDA & SHRI SUDHANSHU SRIVASTAVA
This miscellaneous application has been preferred by the assessee and seeks partial rectification of this Tribunal’s order in 2009-10 wherein vide order dated 5.7.2016 the Tribunal had inadvertently not considered assessee’s ground No. 4.1. Ground No. 4.1 of the assesee’s appeal reads as under:
4.1 Ld. AO erred in law in reducing telecommunication charges of Rs. 251,278,420/- only from the export turnover and not making any corresponding reduction in the total turnover while recomputing the deduction under section 10A of the Act.
It has been contended in the miscellaneous application that the assessee had contended before the Bench that this ground was covered in favour of the assesee by the decision of the Hon’ble Delhi High Court in the case of Genpact India vs. ACIT (reported in 203 taxman 632) and had prayed that on application
MA No. 72/Del/2017 Concentrix Daksh Business Process Securities vs DCIT IBM Daksh Business Process Services Pvt. Ltd. of this judgment of the Hon’ble Delhi High Court there would have been no adjustment to the claim of deduction u/s 10A of the Income Tax Act, 1961 since the exclusion of communication expenses from export turn-over as well as the total turn-over would have remained the same.
The Ld. AR, while supporting the miscellaneous application, has also relied on the objections made by the assessee before the Ld. Dispute Resolution Panel and the case laws paper book filed before the Bench. It has been prayed that the order of the Tribunal be rectified to the effect that ground No. 4.1 of the asseseee’s appeal be adjudicated.
Per contra, the Ld. Sr. DR has supported the order of the Tribunal and has submitted that there is no mistake apparent on the face of the record.
Having heard both the parties and after having perused the order of the Tribunal as well as the records, we agree with the contention of the Ld. AR that ground No. 4.1 as stated above has inadvertently not been adjudicated by this Tribunal in the above mentioned appeal and, therefore, there is a mistake apparent
MA No. 72/Del/2017 Concentrix Daksh Business Process Securities vs DCIT IBM Daksh Business Process Services Pvt. Ltd. from the record and the order of the Tribunal needs to be rectified to that extent. Accordingly, we recall the order for the limited purpose of adjudicating ground no. 4.1
Thus, the Miscellaneous Application stands allowed.
We now take up ground no 4.1 in assessee’s appeal for consideration. We have gone through the cited case laws and the objections raised by the assesee before the Ld. Disputes Resolution Panel and we have also considered the ratio of the judgment of the Hon’ble Delhi High Court in the case of Genpact India vs. ACIT (supra) and we agree with the contention of the Ld. AR that this issue stands covered in favour of the assesee by the aforesaid judgement of the Hon’ble Delhi High Court. Accordingly, while allowing ground No. 4.1, we direct the Assessing Officer to make a corresponding reduction of Rs. 251,278,420/- from the total turn-over while computing the deduction u/s 10A of the Income Tax Act, 1961. Thus ground No. 4.1 stands allowed.
MA No. 72/Del/2017 Concentrix Daksh Business Process Securities vs DCIT IBM Daksh Business Process Services Pvt. Ltd.
In the result the appeal of the assessee stands allowed.
In the final result, the miscellaneous application as well as ground No. 4.1 stand allowed.
Order pronounced in the open court on 12th March, 2020.