ASSISTANT COMMISSIONER OF INCOME TAX, BANGALORE vs. M/S.WRENCH SOLUTIONS PVT. LTD., BANGALORE

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ITA 1815/BANG/2016Status: DisposedITAT Bangalore23 June 2017AY 2010-113 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 if certain expenses are excluded from export turnover for the purpose of Section 10A deduction, they should also be excluded from total turnover. This decision was based on the jurisdictional High Court's ruling in the case of Tata Elxsi Ltd.

What were the facts?

The revenue appealed against the CIT(Appeals) order concerning the computation of deduction under Section 10A. The core dispute was whether expenditure incurred in foreign currency for telecom charges and technical services outside India, excluded from export turnover, should also be excluded from total turnover.

What were the issues?

Whether expenditure excluded from export turnover should also be excluded 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

Cases cited in this judgment(1)Show list

Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.

  • 341 ITR 98
    341 ITR 98 · HC
    6 citing

Income Tax Appellate Tribunal, “C” BENCH : BANGALORE

Before: SHRI SUNIL KUMAR YADAV & SHRI A.K. GARODIA

For Appellant: Shri M.K. Biju, Jt.CIT(DR)(ITAT), Bengaluru
Hearing: 20.06.2017Pronounced: 23.06.2017

Date of hearing : 20.06.2017 Date of Pronouncement : 23.06.2017 O R D E R

Per Sunil Kumar Yadav, Judicial Member

1.

This appeal is preferred by the revenue against the order of CIT(Appeals) inter alia on the following grounds:-

“1. The order of the learned CIT(A) is opposed to law and facts of the case. 2. The CIT(Appeals) ought to have considered that that the expenditure incurred in foreign currency, towards telecom charges and rendering technical services outside India, to be excluded only from export turnover and not from total turnover for the purpose of computation of deduction u/s 10A of the Act, since such exclusion is permitted to arrive at the export turnover only as per the definitions given in Sec. 10A and total turnover has not been defined in the same. 3. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored. 4. The appellant craves leave to add, alter, amend and/or delete any of the grounds mentioned above.”

2.

The only issue involved in this appeal whether the CIT(Appeals) was justified in accepting the claim of assessee that expenditure incurred in foreign currency, towards telecom charges and rendering technical services outside India excluded from export turnover is also to be excluded from the total turnover for the purpose of computation of deduction u/s 10A of the Act.

3.

This issue is covered by the judgment of the Hon'ble jurisdictional High Court in the case of Tata Elxsi Ltd., 341 ITR 98 (Kar) in which it has been held that if certain expenses are excluded from the export turnover, the same should also be excluded from the total turnover. Since the CIT(Appeals) has decided the issue as per judgment of Hon'ble jurisdictional High Court in the case of Tata Elxsi Ltd. (supra), we find no infirmity in the order of CIT(Appeals). Accordingly, the order of CIT(Appeals) is confirmed on this issue and the appeal of the revenue is dismissed.

4.

In the result, the appeal of revenue is dismissed.

Pronounced in the open court on this 23rd day of June, 2017.

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