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Income Tax Appellate Tribunal, BANGALORE BENCH ‘A’, BANGALORE
Before: SHRI A. K. GARODIA & SMT ASHA VIJAYARAGHAVAN
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.
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”.
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.
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.
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.