DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1)(1), BANGALORE vs. M/S AOL ONLINE INDIA PRIVATE LIMITED, BANGALORE

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ITA 787/BANG/2017Status: DisposedITAT Bangalore27 October 2017AY 2011-122 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, stating that total turnover is the sum of export and domestic turnover. Therefore, any reduction in export turnover automatically reduces the total turnover.

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 an expenditure reduced from export turnover should also be reduced from total turnover.

What were the issues?

Whether expenditure reduced from export turnover should also be reduced from total turnover for calculating Section 10A deduction.

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, “C” BENCH : BANGALORE

Before: SHRI ARUN KUMAR GARODIA & SHRI VIJAY PAL RAO

For Appellant: Shri Vineet Kumar Jain, C. A
For Respondent: Shri R. N. Parbat, CIT (DR)
Hearing: 26.10.2017Pronounced: 27.10.2017

Date of hearing : 26.10.2017 Date of Pronouncement : 27.10.2017 O R D E R Per Shri A.K. Garodia, Accountant Member This is a revenue’s appeal directed against the order of CIT (A) – 1, Bengaluru dated 26.12.2016 for Assessment Year 2011 – 12.

2.

The revenue has raised several grounds but the grievance is only one that learned CIT (A) has erred in holding that the expenditure of Rs. 371,49,313/- reduced by the A. O. from export turnover to compute the deduction allowable u/s 10A 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). He also submitted that this issue is now covered in favour of the assessee by the judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi as reported in 349 ITR 98.

4.

We have considered the rival submissions. We find that as per this judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi (Supra), total turnover is sum total of export turnover and domestic turnover and therefore, if an amount is reduced from export turnover, then total turnover also gets

Page 2 of 2 reduced automatically by the same amount. Hence, we decline to interfere in the order of CIT (A). 5. In the result, the appeal filed by the revenue is allowed for statistical purposes. Order pronounced in the open court on the date mentioned on the caption page.

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