PRINCIPAL COMMISSIONER OF vs M/S TATA ELXSI LTD

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 22ND DAY OF OCTOBER, 2021

PRESENT

THE HON’BLE MRS.JUSTICE S.SUJATHA

AND

THE HON’BLE MR. JUSTICE E.S.INDIRESH

I.T.A.No.337/2019

BETWEEN :

1 . PRINCIPAL COMMISSIONER OF OF INCOME TAX-7, BMTC COMPLEX KORAMANGALA, BENGALURU

2 . THE DY. COMMISSIONER OF INCOME TAX CIRCLE-7(1)(1), BMTC COMPLEX KORAMANGALA, BENGALURU

...APPELLANTS

(BY SRI E.I.SANMATHI, ADV.)

AND :

M/s TATA ELXSI LTD., ITBP ROAD, HOODY, WHITEFIELD, BANGALORE-560048 PAN: AAACT7872Q

…RESPONDENT

(BY SRI T.SURYANARAYANA, ADV.)

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 05.12.2018 PASSED IN ITA NO.1517/BANG/2017 (ANNEXURE-A) FOR THE ASSESSMENT YEAR 2011-2012, PRAYING TO A. DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT. B. SET ASIDE THE APPELLATE ORDER DATED 05.12.2018 PASSED

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BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BANGALORE, IN APPEAL PROCEEDINGS ITA NO.1517/BANG/2017 (ANNEXURE-A) FOR THE ASSESSMENT YEAR 2011-2012 AS SOUGHT FOR IN THIS APPEAL.

THIS APPEAL COMING ON FOR ADMISSION, THIS DAY, S. SUJATHA, J., DELIVERED THE FOLLOWING:

J U D G M E N T

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 (‘Act’ for short) assailing the order dated 05.12.2018 passed in ITA No.1517/Bang/2017 by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (‘Tribunal’ for short) relating to the assessment year 2011-12 originally raising the following substantial question of law:- “Whether in the facts and circumstances of the case and in law, the Tribunal is right in law in setting aside the disallowance of Rs.6,21,21,919/- by holding that the same can be considered as part of export turnover by relying upon the decision of this Hon’ble High Court in Wipro Ltd v/s CIT in ITA No.879 of 2008 dt:25-3-2015 even though the assessing authority rightly reduced the said amount from export turnover since the said

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amount was not realized in foreign currency before the due date of filing the return of income?

A memo has been filed by the learned counsel for the appellants – Revenue subsequently raising additional substantial question of law No.2 which reads as under:-

“Whether in the facts and circumstances of the case and in law, the Tribunal is right in law in setting aside the disallowance of Rs.46,97,000/- treated by the assessing authority as income from other sources as against claim of assessee treating the same as export turnover by relying upon the decision in the case of CIT v/s Hewlett Packard Global Soft Ltd [reported in 402 ITR page 453 [Kar. FB]] even though the said decision has not reached finality and considering the materials on record the said amount cannot be treated as part of export turnover?”

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Learned counsel for the assessee has no objection to consider both the substantial questions of law raised by the Revenue.

Having regard to the facts and circumstances of the case, we place the memo on record. Both the aforesaid substantial questions of law are considered admitting the appeal.

In terms of the decision of this Court in ITA No.336/2019 (D.D. 22.10.2021), we answer both the substantial questions of law in favour of the assesse and against the Revenue.

In the result, the appeal stands dismissed.

Sd/- JUDGE

Sd/- JUDGE PMR

PRINCIPAL COMMISSIONER OF vs. M/S TATA ELXSI LTD