DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE vs. M/S LSI INDIA RESEARCH & DEVELOPMENT PVT LTD, BANGALORE

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ITA 2156/BANG/2017Status: DisposedITAT Bangalore11 January 2018AY 2010-112 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed the Karnataka High Court's decision in Tata Elxsi Ltd., stating that reducing an expense from export turnover automatically reduces the total turnover. Therefore, the CIT(A)'s direction was upheld.

What were the facts?

The revenue appealed against the CIT(A)'s order regarding the computation of deduction under Section 10A. The dispute centered on whether expenses reduced from export turnover should also be reduced from total turnover.

What were the issues?

The key issue was the correct method of calculating total turnover for the purpose of Section 10A deduction when certain expenses are reduced from export turnover.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, BANGALORE BENCH ‘SMC – A’, BANGALORE

Before: SHRI A.K.GARODIA, ACCOUNANT MEMBER

For Appellant: Smt. J. Keerthana Reddy, Advocate
For Respondent: Dr. G. Manoj Kumar, Addl. CIT DR

This appeal is filed by the revenue which is directed against the order of CIT (A) – 4, Bangalore dated 30.08.2017 for A. Y. 2010 – 11.

2.

The revenue has raised several grounds but the only grievance of the revenue is about the direction of CIT (A) to the AO that for computing the deduction allowable u/s 10A, expenditure incurred in foreign currency towards telecommunication & software consultancy expenses reduced by the AO from export turnover should also be reduced from total turnover.

3.

Learned DR of the revenue supported the assessment order and learned AR of the assessee supported the order of CIT (A). She also submitted that this issue is covered in favour of the assessee by the judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi Ltd. as reported in 349 ITR 98.

4.

I have considered the rival submissions. I find that in the case of Tata Elxsi Ltd. (Supra), this was held by Hon’ble Karnataka High Court that total turnover is sum total of export turnover and domestic turnover and hence, if an amount is reduced from export turnover, total turnover also gets reduced automatically by the same amount. Respectfully following this judgment, I decline to interfere in the order of CIT (A).

5.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on the date mentioned on the caption page.

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