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Income Tax Appellate Tribunal, BENGALURU BENCH C, BENGALURU
Before: SHRI. A. K. GARODIA & SHRI. LALIET KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER & 717/Bang/2017 (Assessment Year : 2009-10 & 2010-11) Deputy Commissioner of Income-tax, Circle -6(1)(1), Bengaluru .. Appellant v. M/s. SAP India P. Ltd, Wing A, 2nd floor, Tower-B, Salarpuria, Softzone, Sarjapur Outer Ring Road, Belandur Post, Bengaluru 560 103 .. Respondent PAN : AAICS7826B Assessee by : Ms. Vachana, CA Revenue by : Ms. Neera Malhotra, CIT - DR Heard on : 19.11.2018 Pronounced on : 19.11.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER :
The present appeals are filed by the Revenue against the orders of the CIT (A), Bengaluru -6, Bengaluru, dt.27.12.2016 and 26.12.2016, for the assessment years 2009-10 & 2010-11, on the following effective ground :
ITA.716 & 717/Bang/2017 Page - 2
“2. On the facts and in circumstances of the case, the CIT (A) erred in citing the ratio laid down by the Hon’ble High Court in the case of CIT v. Tata Elxsi Ltd. reported in 349 ITR 98 and directing the AO to reduce expenses incurred in foreign currency, both from Export Turnover as well as from Total Turnover for the purpose of computation of deduction u/s.10A, without appreciating the fact that the statute allows exclusion of such expenditure ONLY from Export Turnover by way of a specific definition for Export Turnover in the Act. On the other hand, there is no specific provision in Section 10A warranting exclusion of the above expenses from the Total Turnover also.
The Ld. DR submitted that the CIT (A) was wrong in directing the AO to reduce the expenses deducted both from export turnover as well as from the total turnover for the purpose of computation of deduction u/s.10A of the Act. He further submitted that the CIT (A) had not appreciated the fact that the statute allows exclusion of such expenditure only from export turnover.
On the other hand the Ld. AR for the assessee supported the order of the lower authorities.
We have heard the rival contentions and perused the material on record. We find that this issue is put to rest by the judgment of the Hon’ble Supreme Court in the matter of CIT v. HCL Technologies Ltd [(2018) 93 taxmann.com 33], wherein the Hon’ble Supreme Court has decided the issue in favour of the assessee holding that the expenses be reduced both from the export turnover as well as from the total turnover. The Hon’ble Supreme Court in paras 20 and 21, held as under :