THE COMMISSIONER OF INCOME TAX vs. M/S MASCOT SYSTEMS LTD

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ITA/432/2014HC KarnatakaKAHC01035263201406 March 2015Bench: S.SUJATHA,VINEET SARAN3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the substantial question of law raised had already been answered in favour of the Assessee in a previous case (CIT vs. Tata Elxsi Ltd.). Therefore, the appeal was dismissed.

What were the facts?

The Revenue appealed against a Tribunal's decision that allowed the Assessee to reduce foreign travel expenses from both export turnover and total turnover for Section 10A deduction. The Assessee's employees incurred these expenses in foreign exchange.

What were the issues?

Whether foreign travel expenses deducted from export turnover under Section 10A should also be reduced from total turnover for the same deduction.

Which sections of the Income-tax Act were involved?

Section 10A,Section 260A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 6TH DAY OF MARCH 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MRS. JUSTICE S.SUJATHA

ITA NO 432 OF 2014

BETWEEN

1.

THE COMMISSIONER OF INCOME TAX C R BUILDING, QUEENS ROAD BANGALORE.

2.

THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-12(1) RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE .

... APPELLANTS

(BY SRI. K V ARAVIND, ADV. )

AND

M/S MASCOT SYSTEMS LTD. (NOW M/S IGATE GLOBAL SOLUTIONS LTD., ) FLAT NO.158-162(P), EPIP 2ND PHASE, NEAR SAP LAB WHITEFIELD, BANGALORE.

... RESPONDENT

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:09/05/2014 PASSED

IN ITA NO.2291/BANG/2004, FOR THE ASSESSMENT YEAR 2001- 2002.

THIS ITA COMING ON FOR ORDERS THIS DAY, VINEET SARAN J. DELIVERED THE FOLLOWING:

JUDGMENT

The Revenue has preferred this appeal against granting relief to the Assessee. The substantial question of law raised in this appeal is as under:

“Whether, on the facts and in the circumstances of the case and in law, the Tribunal was correct in holding that the expenses incurred in foreign exchange on foreign travel of the Assessee’s employees deducted from computing export turnover under Section 10A of the Act should also be reduced for computing total turnover when arriving at deduction under Section 10A of the Act and moreover when the decision relied upon by the Tribunal has not reached finality?”

2.

This Court had an occasion to consider the substantial question of law, in the case of Commissioner Of Income-Tax And Another -vs- Tata Elxsi Ltd. reported in

(2012) 349 ITR 98 (Karn), wherein, after referring to the various

provisions of law and the judgments of various Courts, the said substantial question of law has been answered in favour of the Assessee and against the Revenue. Accordingly, as the said substantial question of law is already answered by this Court, no case for admission is made out.

3.

However, it is submitted that the Revenue has preferred an appeal to the Apex Court against the judgment of this Court, which is pending consideration.

4.

In the event of the Revenue succeeding in the appeal before the Apex Court then the Assessing Authority shall pass consequential order in terms of Section 260(1A) of the Income Tax Act 1961.

With the aforesaid observation, the appeal is dismissed.

Sd/-

JUDGE

Sd/-

JUDGE TL

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