M/A AFFILIATED COMPUTER SERVICES OF INDIA PRIVATE LIMITED,BANGALORE vs. DCIT, BANGALORE

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ITA 1596/BANG/2012Status: DisposedITAT Bangalore19 February 2016AY 2008-093 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal allowed the assessee's claim to reduce total turnover by items excluded from export turnover for Section 10A benefit, following the jurisdictional High Court's decision in CIT Vs M/s Tata Elxsi Ltd.

What were the facts?

The assessee withdrew transfer pricing grounds due to Mutual Agreement Procedure (MAP) proceedings. The remaining issue concerned the exclusion of certain items from total turnover for Section 10A deduction computation.

What were the issues?

Whether items excluded from export turnover should also be excluded from total turnover for computing Section 10A deduction.

Which sections of the Income-tax Act were involved?

Section 10A

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Income Tax Appellate Tribunal, BANGALORE ‘B’ BENCH, BANGALORE

Before: SHRI ABRAHAM P GEORGE & SHRI VIJAY PAL RAO

For Appellant: Shri Keerthi Narayan, CA
For Respondent: Smt Neera Malhotra, CIT

matters in this appeal. In support thereof, a copy of the order dated 28th

2 IT(TP)A No.1596(B)/12 October, 2015 Foreign Tax & Tax Research Division of CBDT was filed. As per learned AR, the only other issue in the appeal filed by the assessee was on exclusion of those items which were deducted from export turnover from total turnover as well for computing deduction u/s 10A of the IT Act, 1961.

2.

Per contra, learned DR fairly agreed that the MAP proceedings had brought to an end the dispute between the assessee and the department in sofaras it related to TP matter. On the other issue, learned DR submitted that department had filed an SLP before the Hon’ble Apex Court against the judgment of the Hon’ble jurisdictional High Court in the cs of CIT Vs M/s Tata Elxsi Ltd.(2012) 349 ITR 0098.

3.

We have heard the rival contentions and also perused the order dated 28-10-2015 giving the result of the MAP proceedings for the impugned assessment year in relation to the transfer pricing issue. Assessee had sought withdrawal of the transfer pricing issues raised by it in its appeal. In accordance with its request such grounds are dismissed as withdrawn.

4.

Only other issue is with regard to computation of deduction available to the assessee u/s 10A of the IT Act, 1961. In view of the judgment of the Hon’ble

3 IT(TP)A No.1596(B)/12 jurisdictional High Court in the case of M/s Tata Elxsi Ltd (Supra), assessee in our opinion, can legitimately claim reduction from total turnover, the items which are excluded from the export turnover, while computing u/s 10A benefit.

This claim is directed to be allowed.

5.

Levy of interest u/s 234B and 234D being consequential does not need specific adjudication.

6.

In the result, the appeal of the assessee is partly allowed.

Order pronounced in the open Court on the 17th February, 2016.

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