Loading judgment…
No AI summary yet for this case.
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ON THE 19TH DAY OF NOVEMBER, 2018
BEFORE THE HON'BLE MR. JUSTICE RAVI MALIMATH
AND
THE HON'BLE MR. JUSTICE K. NATARAJAN
INCOME TAX APPEAL No.71 of 2011
BETWEEN
THE COMMISSIONER OF INCOME TAX, C.R. BUILDING, QUEENS ROAD, BANGALORE.
THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-11(4), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE. ... APPELLANTS (BY SRI K.V. ARAVIND, ADVOCATE)
AND
M/S. INFOSYS TECHNOLOGIES LTD., No.44 & 97A, 3RD CROSS, ELECTRONIC CITY, HOSUR ROAD, BANGALORE. ... RESPONDENT
(BY SRI T. SURYANARAYANA, ADVOCATE)
THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF THE INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 08/10/2010 PASSED IN ITA No.1202/BANG/2009, FOR THE ASSESSMENT YEAR 2004-2005, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BANGALORE IN ITA No.1202/BANG/2009 DATED 08/10/2010 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(4), BANGALORE.
THIS INCOME TAX APPEAL COMING ON FOR HEARING THIS DAY, RAVI MALIMATH, J, DELIVERED THE FOLLOWING:
J U D G M E N T
Heard.
The appeal was admitted to consider the following three substantial questions of law: “1. Whether the Appellate Authorities were correct in reversing the finding of the Assessing Officer that the expenses of Rs.1041,17,04,887/- incurred in foreign currency for rendering technical services outside India was to be reduced from the export turnover as per Clause (iv) of Exp.2 to
S.10A of the Act when computing deduction u/s. 10A of the Act?
Whether the Appellate Authorities were correct in reversing the finding of the Assessing Officer that the exchange fluctuation gains of Rs.2,00,81,884/- did not partake the character of turnover and was not a profit from the export business for the purpose of allowing deduction u/s. 80HHE of the Act?
Whether the Appellate Authorities were correct in reversing the finding of the Assessing Officer that the expenses of Rs.8,54,693/- incurred for rendering technical services outside India which was required to be reduced from the export turnover and the total turnover as per Clauses (c) and (e) respectively of the Explanation below sub- section 80HHE(5) of the Act while computing deduction allowable u/s. 80HHE of the Act?”
So far as the first and third substantial questions of law are concerned, the very questions came up for consideration before this Court in the case of THE
COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/s. INFOSYS TECHNOLOGIES LTD., in ITA No.2973 of 2005 and connected matters, which were disposed off on 13.02.2013, whereby the appeals were allowed by answering the substantial questions of law against the assessee and in favour of the Revenue and the matter was remanded to the Assessing Officer to consider the matter afresh.
Learned counsels submit that in view of the aforesaid decision, the first and third substantial questions of law require to be similarly dealt with.
In view of the submission made, the first and third substantial questions of law are answered in favour of the Revenue and against the assessee and the matter is remanded to the Assessing Officer to consider the matter afresh in the light of the aforesaid order. All contentions are kept open.
So far as the second substantial question of law is concerned, the same is answered by the judgment of this Court in the case of THE COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/s. INFOSYS TECHNOLOGIES LTD., in ITA No.1189 of 2006, disposed off on 22.11.2011, wherein the fourth substantial question of law was held in favour of the assessee and against the Revenue. Following the said judgment, the second substantial question of law raised in this appeal is answered in favour of the assessee and against the Revenue.
The substantial questions of law are accordingly answered.
The appeal is disposed off.
SD/-
SD/- JUDGE
JUDGE