DEPUTY COMMISSIONER OF INCOME TAX, BANGALORE vs. M.S SASKEN COMMUNICATIONS TECHNOLOGIES LTD, BANGALORE

ITA 1253/BANG/2014Status: DisposedITAT Bangalore31 July 2015AY 2005-0628 pages
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What did the Tribunal hold?

The Tribunal held that the issue of deemed exports to another STP unit is covered by the jurisdictional High Court's decision and remitted it to the AO for verification. The Revenue's appeals were dismissed, and the assessee's cross-objections were partly allowed.

What were the facts?

The Revenue appealed against the CIT(A)'s order holding compensation received by the assessee as capital in nature and not taxable. The assessee also filed cross-objections, seeking to treat the compensation as business income eligible for deduction under Section 10A, and also raised issues regarding reimbursement of expenses and deemed exports.

What were the issues?

Whether compensation for contract termination is capital or revenue receipt, and whether deemed exports to another STP unit are eligible for deduction under Section 10A.

Which sections of the Income-tax Act were involved?

Section 10A

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, BANGALORE BENCH ‘B’

Before: SHRI VIJAYPAL RAO & SHRI JASON P BOAZ

For Appellant: Shri Padamchand Khincha, C.A Date of Hearing : 9-7-2015
For Respondent: Shri PK Srihari, Adl. CIT, Shri Padamchand Khincha, C.A Date of Hearing : 9-7-2015

PER BENCH :

These two appeals are filed by the Revenue and the Cross objections are filed by the assessee. The relevant assessment years are ITA Nos.1253 & 1254/B/14 CO Nos.32 & 33/B/15 2

2005-06 and 2006-07. The appeals are directed against the two

separate orders of Commissioner of Income-tax (Appeals) – II CIT(A)

both dated 28/2/2014. The appeals arise out of the assessments

completed u/s 143(3) of the Income-tax Act, 1961. 2. The Revenue has raised common grounds in these appeals. The grounds raised for the assessment year for 2005-06 are as under:-

(1) The order of the lea

The order continues below.

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