DEPUTY COMMISSIONER OF INCOME-TAX, BANGALORE vs. M/S. TOSHIBA SOFTWARE INDIA PVT. LTD, BANGALORE

PDF · subscribers
ITA 1814/BANG/2016Status: DisposedITAT Bangalore27 September 2017AY 2011-123 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 expenses incurred in foreign currency towards telecommunication and other charges should be reduced from both export turnover and total turnover for computing deduction under Section 10A. 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 treatment of expenses incurred in foreign currency for telecommunication and other charges.

What were the issues?

Whether expenses incurred in foreign currency towards telecommunication and other charges should be reduced from export turnover and total turnover for the purpose of Section 10A deduction.

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

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, BANGALORE BENCH ‘ C ’

Before: SHRI VIJAY PAL RAO & SHRI INTURI RAMA RAO

For Appellant: Shri R.N. Parbat, CIT (D.R)

Per Shri Vijay Pal Rao, J.M. : This appeal by the revenue is directed against the order dt.22.07.2016 of Commissioner of Income Tax (Appeals)-14, Bangalore for the Assessment Year 2008-09.

2.

The revenue has raised the following grounds :

2 IT(TP)A No.1814/Bang/2016

3.

The only issue raised by the revenue in this appeal is regarding the expenses incurred in foreign currency towards telecommunication charges and other expenses 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.

We have heard the learned D.R. as well as learned A.R. and considered the relevant material on record. We find that the issue of expenditure incurred towards telecommunication charges and other expenses in foreign currency is reduced from export turnover an equal

1.

3 IT(TP)A No.1814/Bang/2016 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 appeal of revenue is dismissed.

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

More judgments on Section 10A

All 2,147 judgments and leading authorities on Section 10A →

Recent GST High Court judgments

Search GST case law →