DCIT, BANGALORE vs. M/S EXILANT TECHNOLOGIES PVT. LTD., BANGALORE

PDF · subscribers
ITA 1267/BANG/2015Status: DisposedITAT Bangalore15 July 2016AY 2011-124 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 upheld the CIT(A)'s decision, relying on the Karnataka High Court's ruling in Tata Elxsi Ltd. The court held that reducing export turnover automatically reduces total turnover, thus impacting the exemption calculation.

What were the facts?

The revenue appealed against the CIT(A)'s order allowing the assessee to reduce expenditure incurred in foreign currency from both export turnover and total turnover for calculating Section 10A exemption. The assessee supported the CIT(A)'s order.

What were the issues?

Whether expenditure incurred in foreign currency should be reduced from both export and total turnover for calculating Section 10A exemption.

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 ‘A’, BANGALORE

Before: SHRI A. K. GARODIA & SMT ASHA VIJAYARAGHAVAN

For Appellant: Shri Padamchand Khincha, CA
For Respondent: Shri Padamchand Khincha, CA

This is revenue’s appeal directed against the order the ld.CIT(A), Banfalore-2, for the assessment year : 2011-12.

2. The grounds raised by the revenue are as under “1.The order of the Ld. CIT(A) is contrary to the facts and circumstances of the case and hence not sustainable.

2.

The CIT(A) has erred on the decision relied on the jurisdictional Hon’ble High Court in the case of Tata Elxsi Ltd., Vs ACIT (349 ITR 98) and in directing the AO

to allow the appellant’s claim for reducing the expenditure incurred in foreign currency not only from the export turnover but also from the total turnover in determining the exemption u/s 10A available and tax liability on the total income so determined under the normal provisions of the IT Act while the tax determined under MAT provisions would remain unchanged.

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 AO may be restored.

4. The appellant craves leave to add, alter, amend and/or delete and of the grounds mentioned above”.

3.

The ld. DR of the revenue supported the assessment order, whereas the ld. AR of the assessee supported the order of the ld. CIT(A).

He also submitted that the issue involved in this appeal is covered in favour of the assessee by the judgment of the Hon’ble Karnataka High Court rendered in the case of M/s Tata Elxsi Ltd., as reported in 349 ITR 98.

4.

We have considered the rival submissions. We find that the issue involved in the revenue’s appeal is covered in favour of assessee by the judgment of the Hon’ble Karnataka High Court rendered in the case of M/s Tata Elxsi Ltd., (Supra) in which it was held that the total turnover is nothing but sum total of export turnover and domestic turnover and therfore, if an amount is reduced from the export turnover it will automatically result into reduction of total turnover also by the same amount. Hence, we decline to interfere with the order of the ld. CIT(A) on this issue.

5.

In the result, the appeal filed by the revenue is dismissed.

Order pronounced in the open court on the date mentioned on the caption page.

More judgments on Section 10A

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

Recent GST High Court judgments

Search GST case law →