DEPUTY COMMISSIONER OF INCOME TAX, BANGALORE vs. M/S. AKAMAI TECHNOLOGIES INDIA PVT LTD., BANGALORE

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ITA 1356/BANG/2016Status: DisposedITAT Bangalore27 September 2017AY 2008-093 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 held that telecommunication and travelling expenses in foreign currency, when reduced from export turnover, should also be reduced from total turnover for computing Section 10A deduction. This decision followed the jurisdictional High Court's ruling in CIT Vs. Tata Elxsi Ltd.

What were the facts?

The revenue appealed against the CIT(A)'s order concerning the assessment year 2008-09. The core issue was the exclusion of telecommunication and travelling expenses incurred in foreign currency from export turnover for Section 10A deduction.

What were the issues?

Whether telecommunication and travelling expenses in foreign currency should be excluded from export turnover and total turnover for the purpose of calculating deduction under Section 10A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, BANGALORE BENCH ‘ C ’

Before: SHRI VIJAY PAL RAO & SHRI INTURI RAMA RAO

For Appellant: Shri Sandeep H Huilgol, Advocate

Per Shri Vijay Pal Rao, J.M. : This appeal by the revenue and Cross Objection by the assessee are directed against the order dt.30.06.2016 of Commissioner of Income Tax (Appeals)-14, Bangalore for the Assessment Year 2008-09.

C.O. NO.25/Bang/2017 2. The revenue has raised the following grounds :

3.

Thus it is clear that the only issue raised by the revenue is regarding exclusion of telecommunication expenses and travelling expenses incurred in foreign currency from export turnover as well as total turnover for computation of deduction under Section 10A of the Income Tax Act, 1961 (in short 'the Act').

4.

The assessee in the cross objection has supported the order of the CIT (Appeals).

1.

C.O. NO.25/Bang/2017 5. We have heard the rival submissions and considered the relevant material on record. We find that the issue of expenditure incurred towards telecommunication charges and travelling expenses in foreign currency is reduced from export turnover an equal amount should also be reduced from total turnover while computing the deduction under section 10A of the Act, is covered in favour of the assessee by the decision of the Hon’ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. 349 ITR 98 (Kar). The decision of Hon'ble jurisdictional High Court has been followed in a number of cases in co-ordinate benches of ITAT. Hence, this issue is decided against the revenue and in favour of assessee.

5.

In the result, the revenue’s appeal as well as C.O. of assessee are dismissed.

Order pronounced in the open court on 27th Sept., 2017.

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