ASST. COMMISSIONER vs M/S. SYMPHONY SERVICES CORP

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 10TH DAY OF JUNE 2016

PRESENT

THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MR.JUSTICE B.SREENIVASE GOWDA ITA NO.477/2015 BETWEEN:

ASST. COMMISSIONER OF INCOME-TAX CIRCLE-12(3) BANGALORE - 560 001.

...APPELLANT (BY SRI.E.I.SANMATHI, ADVOCATE FOR SRI.JEEVAN.J.NEERALGI, ADVOCATE)

AND:

M/S. SYMPHONY SERVICES CORP (INDIA) PVT LTD SY NO.13/1, KADUBEESANAHALLI VILLAGE, OUTER RING ROAD, VARTHUR HOBLI, BANGLORE - 560 087.

...RESPONDENT

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER

2 DATED:30/01/2015 PASSED IN IT(TP)A NO.1320/BANG/2010, FOR THE ASSESSMENT YEAR 2006-07 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW FRAMED ABOVE AND ALLOW THE APPEAL OF THE APPELLANT BY SETTING ASIDE THE FINDING OF THE ITAT, BENGALURU PASSED IN IT(TP)A NO.1320/BANG/2010 DT:30/01/2015 WITH REGARD TO ISSUE NO. 3 BY CONFIRMING THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER 3. PASS SUCH OTHER ORDER AS THIS HON'BLE COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY.

THIS APPEAL COMING ON FOR ADMISSION THIS DAY, JAYANT PATEL J., DELIVERED THE FOLLOWING:

JUDGMENT

The appellant-Revenue has preferred the present appeal by raising the following substantial questions of law: “1. Whether on the facts and circumstances of the case, the ITAT is justified in law in allowing the appeal of the respondent by directing the Assessing Officer to exclude reimbursement of certain expenditure incurred in foreign currency, both from the Export Turnover and Total Turnover,

3 without appreciating the fact that the statute allows exclusion of such expenditure expressly only from the Export Turnover by way of specific definition of export turnover defined in the Act ?

Whether, in the absence of specific provision in Section 10A of the Act warranting exclusion of the expenses from the total turnover, the impugned order of the ITAT is legally correct in directing the Assessing Officer to exclude the expenses from the total turnover? "

The learned Counsel for the appellant-Revenue fairly conceded that the Tribunal as in the impugned order relied upon the decision of this Court in case of Commissioner of Income Tax And Another Vs. Tata Elxsi Ltd., reported at (2012) 349 ITR 98 (Karn.) and he submitted that the issue as such, can be said as covered by the above referred decision. However, he submitted that the Revenue has carried the matter before the Apex Court.

4 3. In our view, as on today, the matter is already covered by the decision of this Court in the case of Tata Exlsi (supra) and therefore it cannot be said that any substantial questions of law would arise for consideration as sought to be canvassed.

However, in the event the Apex Court takes a different view the Revenue may initiate the proceedings in accordance with law. 5. Hence, subject to the aforesaid observation, the present appeal is dismissed.

Sd/- JUDGE

JT/-

ASST. COMMISSIONER vs. M/S. SYMPHONY SERVICES CORP