DCIT CORPORATE CIRCLE 3(2), CHENNAI vs. VERIZON DATA SERVICES PVT. LTD., CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -11, Chennai, dated 31.08.2017 and pertains to assessment year 2009-10.

We heard Shri AR.V. Sreenivasan, the Ld. Departmental Representative and Shri Sriram Seshadri, the Ld. representative for the assessee. The only issue arises for consideration is computation of eligible profit under Section 10A of the Income-tax Act, 1961 (in short 'the Act'). The Assessing Officer included the telecom charges incurred in foreign currency in export turnover and excluded from total turnover. The CIT(Appeals), however, directed the Assessing Officer to exclude the telecom charges both from the export turnover and total turnover. In fact, the CIT(Appeals) placed his reliance on the decision of this Bench of the Tribunal in Ford Business Services Centre in dated 19.02.2016. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

In the result, the appeal filed by the Revenue stands dismissed.