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Income Tax Appellate Tribunal, BANGALORE BENCH “A”, BANGALORE
Before: SHRI A.K. GARODIA & SMT. ASHA VIJAYRAGHAVAN
O R D E R PER A. K. GARODIA, AM.
All these three appeals are filed by the revenue and since, only a common issue is involved in these appeals, all these appeals were heard together and are being disposed of by this common order for the sake of convenience.
The only issue involved in these appeals is regarding computation of deduction allowable to the assessee u/s 10A and in particular whether expenditure incurred in foreign currency is to be reduced from Export Turnover only as has been done by the A.O. or from Total Turnover also as held by CIT (A) by following the Judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi Limited vs. ACIT, 349 ITR 98.
Learned DR of the revenue supported the assessment order whereas 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 Limited vs. ACIT, 349 ITR 98.
We have considered the rival submissions. The ratio of the judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi Limited vs. ACIT (Supra) is this that the total turnover is sum total of export turnover and domestic turnover and therefore, if any amount is reduced from export turnover, the total turnover will consequently go down by the same amount. Hence, respectfully following this judgment, we decline to interfere in order of CIT (A) on this issue in all three assessment years.
In the result, all these three appeals of the revenue are dismissed.
(Order was pronounced in the open court on the date mentioned on the caption page)