ACIT, CHENNAI vs. SCIENTIFIC PUBLISHING SERVICES PVT. LTD., CHENNAI

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ITA 2489/CHNY/2014Status: DisposedITAT Chennai19 January 2015AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(Appeals)'s decision that expenses incurred in foreign exchange and communication charges are deductible from both export turnover and total turnover for computing deduction under Section 10B. This was based on a Special Bench decision and a prior ruling in the assessee's own case.

What were the facts?

The Revenue appealed the CIT(Appeals) order regarding the assessment year 2009-10. The core issue was whether expenses incurred in foreign exchange and communication charges should be deducted from both export turnover and total turnover for computing deduction under Section 10B.

What were the issues?

The primary issue was the correct method of calculating export turnover and total turnover for the purpose of Section 10B deduction, specifically concerning the deductibility of foreign exchange and communication charges.

Which sections of the Income-tax Act were involved?

Section 10B

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Income Tax Appellate Tribunal, “ C” BENCH, CHENNAI

Before: SHRI B.R. BASKARAN & SHRI VIKAS AWASTHY

Hearing: 19.01.2015Pronounced: 19.01.2015

आदेश /O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

1.

The Revenue has filed this appeal challenging the order dated 30.06.2014 passed by Ld CIT(Appeals)-VI, Chennai and it relates to the assessment year 2009-10. The Revenue is aggrieved by the decision of Ld CIT(Appeals) in holding that the expenses incurred in foreign exchange and Communication charges are to be deducted both from Export turnover and Total turnover for computing deduction u/s 10B of the Act.

2.

A perusal of the order of Ld CIT(Appeals) would show that the first appellate authority has followed the decision rendered by the Special bench of the Tribunal in the case of M/s SAK Soft Ltd (2009)(30 SOT 55)(Chennai) in holding so. The Ld CIT(Appeals) has also noticed that the Tribunal has decided an identical issue in favour of the assessee in its own appeal relating to AY 2007-08 in dated 11.5.2012, by following the Special bench decision referred above.

3.

Under these set of facts, we do not find any infirmity in the order of Ld CIT(Appeals) in holding that the expenses incurred in foreign exchange and Communication charges are to be deducted both from Export turnover and Total turnover for computing deduction u/s 10B of the Act by following the decision of Special bench referred above.

Accordingly, we uphold his order on this issue.

4.

In the result, the appeal filed by the revenue is dismissed.

Order pronounced on the 19th day of January, 2015 at Chennai.

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