CIT v. Gem Plus Jewellery India Ltd.

330 ITR 175High Court2011#436 most cited

What is CIT v. Gem Plus Jewellery India Ltd. authority for?

Disallowances made under various sections, such as for PF/ESIC contributions, result in an increase in business profits, and these enhanced profits are eligible for deduction under Sections 10A and 10AA. Similarly, gains from foreign exchange fluctuations directly linked to export sales are also eligible for deduction under Section 10A.

207

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Gem Plus Jewellery India Ltd. · Section 10A deduction · Section 10AA deduction · business profits · enhanced profits · disallowances · PF ESI contributions · Section 43B · Section 36(1)(va) · foreign exchange fluctuations · export sales · disallowance u/s 14A

Also reported as

194 Taxmann 192

Sections most often in play

Section 10ASection 143(3)Section 142(1)Section 143(2)Section 10AASection 115JBSection 263Section 127
Read the full judgment

Issues it is cited on

section 10asection 10aacomputer softwaresection 40(a)(i)section 80iassociated enterprisessection 40(a)associated enterprisesection 10section 40international transactionsection 43

Judgments citing CIT v. Gem Plus Jewellery India Ltd.

ITO 8(2)2, Mumbai vs. Kiara Jewellery P.Ltd, Mumbai

In the result, appeal filed by the Revenue in ITA No

ITA 5040/MUM/2014[2009-10]Status: DisposedITAT Mumbai19 Dec 2016AY 2009-10

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.5040/Mum/2014 ("नधा"रण वष" / Assessment Year : 2009-10) I.T.O. – 8(2)-2, M/S Kiara Jewellery Pvt. बनाम/ R. No. 212/216A, 2Nd Floor, Ltd., V. Aayakar Bhavan, Unit No. 180, 1St Floor, M.K. Road, Sdf Vi, Mumbai – 400 020. Seepz, Sez, Andheri (E), Mumbai – 400 096. "थायी लेखा सं./Pan :Aacck4789M .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Hiro RaiFor Respondent: Shri A.K. Dhondial
Section 10ASection 143(3)Section 70Section 71Section 72

…ired to be excluded from the export turnover in terms of Explanation 2 (iv) of Section 10A are also required to be excluded from the total turnover in terms of the decision of the Hon'ble Bombay High Court in the case of CIT vs. Gem Plus Jewellery India Ltd., 330 ITR 175, without appreciating that the Department has filed an SLP in respect of the said decision. 6. The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the A.O. be restored.” 3. The brief facts of the case are that the assessee is engaged in the business of manufacturing and export of diamond studded gold and…

Little Eye Software Labs Private Limited

In the result, the appeal is disposed of

COP/210/2016HC Karnataka25 Nov 2016

Bench: VINEET KOTHARI

Section 10ASection 195Section 260Section 40

…ed in favour of the assessee by a Bench of this Court in 'COMMISSIONER OF INCOME TAX Vs. HEWLETT PACKARD GLOBAL SOFT LTD.' (2017) 82 TAXMANN.COM 182 (KAR) as well as decision of Bombay High Court in 'CIT Vs. GEMS PLUS JEWELLERY 4 INDIA LIMITED' (2011) 330 ITR 175 (BOMBAY) and the second substantial question of law has been answered in favour of the assessee by the Supreme Court in 'CIT Vs. HCL TECHNOLOGIES LTD.' (2018) 404 ITR 719 (SC). Learned counsel for the assessee has further submitted that the first substantial question of law has been rendered academic. 4. On the other hand, learned counsel f…

M/S. Steria India Ltd., Noida vs. DCIT, New Delhi

In the result, the appeal is partly allowed

ITA 108/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Nov 2016AY 2011-12

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2011-12 Steria India Ltd. Vs. Dcit, (Earlier Known As Xansa (India) Ltd.), Circle-24(2), Sea View Special Economic Zone, Cr Building, Ip Estate, Building No.4, Plot No.20 & 21, New Delhi. Sector-135, Gautam Budh Nagar, Noida. Pan: Aaacx0385L (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR
Section 10ASection 143(3)Section 144CSection 195Section 40

…ason that `Total turnover’ always includes `Export turnover’ and if a particular item is not a part of export turnover, that cannot constitute a 5 part of `Total turnover’ as well. The Hon’ble Bombay High Court in CIT vs. Gemplast Jewellery India Ltd. (2011) 330 ITR 175 (Bom) has held to this extent. Similar view has been taken by the Delhi Bench of the Tribunal in assessee’s own case for the A.Y. 2009-10, a copy of which order is available on record. Respectfully following the precedent, we direct that the total of the above referred three expenses be simultaneously excluded from the amount of ‘Total turnover’…

M/S. Steria India Ltd., Noida vs. DCIT, New Delhi

In the result, the appeal is partly allowed for statistical purposes

ITA 107/DEL/2016[2010-11 (F.Y. 2009-10)]Status: DisposedITAT Delhi04 Nov 2016

Bench: Shri R.S. Syal & Shri Kuldip Singhassessment Year : 2010-11 Steria India Ltd. Vs. Dcit, (Earlier Known As Xansa (India) Ltd.), Circle-24(2), Sea View Special Economic Zone, Cr Building, Ip Estate, Building No.4, Plot No.20 & 21, New Delhi. Sector-135, Gautam Budh Nagar, Noida. Pan: Aaacx0385L (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR
Section 10ASection 143(3)Section 144CSection 195Section 40

…that `Total turnover’ always includes `export turnover’ and if a particular item is not a part of export turnover, that cannot 5 partake the character of total turnover as well. The Hon’ble Bombay High Court in CIT vs. Gemplast Jewellery India Ltd. (2011) 330 ITR 175 (Bom) has held to this extent. Similar view has been taken by the Delhi Bench of the Tribunal in assessee’s own case for the A.Y. 2009-10, a copy of which order is available on record. Respectfully following the precedent, we direct that the total of the above referred three expenses be simultaneously excluded from the amount of ‘Total turnover…

Informed Technologies India Ltd, Mumbai vs. DCIT 3(2), Mumbai

ITA 6467/MUM/2014[2011-12]Status: DisposedITAT Mumbai28 Oct 2016AY 2011-12

Bench: Shri G.S. Pannu () & Shri Ravish Sood ()

For Appellant: Shri Surinder MehraFor Respondent: Shri Javed Akhtar
Section 10ASection 143(3)Section 14ASection 23(1)

…ofits eligible for deduction u/s 10A, to the said extent would stand enhanced. We find that the issue involved is covered by the judgment of the Hon’ble High Court of Bombay in the case of : Commissioner of Income-tax Vs. Gem Plus Jewellery India Ltd. (2011) 330 ITR 175 (Bom) , wherein the Hon’ble High Court held as under:- “The disallowance of the PF/ESIC payments has been made because of the statutory provisions – s. 43B in the case of the employer‟s contribution and s. 36(v) r/w s. 2(24)(x) in the case of the employees contribution which has been deemed to be the income of the assessee. The plain consequen…

Informed Technologies India Ltd, Mumbai vs. DCIT 3(2), Mumbai

ITA 6466/MUM/2014[2010-11]Status: DisposedITAT Mumbai28 Oct 2016AY 2010-11

Bench: Shri G.S. Pannu () & Shri Ravish Sood ()

For Appellant: Shri Surinder MehraFor Respondent: Shri Javed Akhtar
Section 10ASection 143(3)Section 14ASection 23(1)

…ofits eligible for deduction u/s 10A, to the said extent would stand enhanced. We find that the issue involved is covered by the judgment of the Hon’ble High Court of Bombay in the case of : Commissioner of Income-tax Vs. Gem Plus Jewellery India Ltd. (2011) 330 ITR 175 (Bom) , wherein the Hon’ble High Court held as under:- “The disallowance of the PF/ESIC payments has been made because of the statutory provisions – s. 43B in the case of the employer‟s contribution and s. 36(v) r/w s. 2(24)(x) in the case of the employees contribution which has been deemed to be the income of the assessee. The plain consequen…

Asst. CIT, Bangalore vs. M/S Cgi Information Systems & Management Consultant Pvt. Ltd., Bangalore

In the result, the revenue’s appeal is dismissed and the

ITA 346/BANG/2015[2010-11]Status: DisposedITAT Bangalore26 Oct 2016AY 2010-11

Bench: Smt. Asha Vijayaraghavan & Shri Inturi Rama Rao

For Appellant: Shri. T. Suryanarayana, AdvocateFor Respondent: Shri. G. R. Reddy, CIT (DR)-I
Section 10ASection 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER IT(TP) No.346/Bang/2015 (Assessment year: 2010-11) ACIT, Circle-2(1)(1), 5th Floor, No. 14/7, R. P. Bhavan, … Appellant Nrupathunga Road, Bangalore Vs. M/s. CGI Information System & Management … Respondent Consultant Pvt. Ltd., 95/1, 95/2, Electronic City, Phase-I(West), Bangalore – 560 100. PAN : AAACI1994C C.O. No. 110/B/2015 [in IT(TP) No.346/Bang/2015] (Assessment year: 2010-11) M/s. CGI Information System & Management Consultant Pvt. Ltd., 95/1, 95/2, ……

ITO vs. M/S Cdc Software India Pvt. Ltd., Bangalore

ITA 1645/BANG/2013[2005-06]Status: DisposedITAT Bangalore14 Oct 2016AY 2005-06

Bench: Smt Asha Vijayaraghavan & Shri Inturi Rama Rao

For Appellant: Shri. Prashanth G. S, CAFor Respondent: Smt. Meera Srivastava, Addl. CIT (DR)
Section 10Section 92C

…of CIT v. Catapharma (India) (P.) Ltd. [2007] 292 ITR 641/ 162 Taxman 455. The Bombay High Court had an occasion to consider the meaning 18. of the word 'total turnover' in the context of Section 10-A, in the case of CIT v.Gem Plus Jewellery India Ltd. [2011] 330 ITR 175 [2010] 194 Taxman 192 (Bom.). Interpreting sub-Section (4) of Section 10-A, it is held as under: "Under sub-section (4) the proportion between the export turnover 19. in respect of the articles or things, or, as the case may be, computer software exported, to the total turnover of the business carried over by the under- taking is applied to the p…

ITO, New Delhi vs. M/S. Fis Global Recovery Services India Pvt. Ltd., New Delhi

In the result, the appeal is dismissed

ITA 4315/DEL/2012[2009-10]Status: DisposedITAT Delhi30 Sept 2016AY 2009-10

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

Section 10ASection 143(3)Section 92E

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER ITA Nos. 1410 & 4315/Del/2012 Assessment Years: 2008-09 & 2009-10 Income Tax Officer, Ward- Vs. M/s. FIS Global Recovery 11(2), Room No. 321, C.R. Services India Pvt. Ltd., S- Building, New Delhi 405 (LGF), Greater Kailash, Part-II, New Delhi PAN : AACCG0720A (Appellant) (Respondent) Appellant by Sh. Anil Kumar Sharma, Sr.DR Respondent by S/sh. S.D. Kapila & R.R. Maurya, Advocates Date of hearing 25.07.2016 Date of pronouncement 30.09.2016 ORDER PER O.P. KANT, A.M.:…

ITO, New Delhi vs. M/S. Fis Global Recovery Service India Pvt. Ltd., New Delhi

In the result, the appeal is dismissed

ITA 1410/DEL/2012[2008-09]Status: DisposedITAT Delhi30 Sept 2016AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. O.P. Kant

Section 10ASection 143(3)Section 92E

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER ITA Nos. 1410 & 4315/Del/2012 Assessment Years: 2008-09 & 2009-10 Income Tax Officer, Ward- Vs. M/s. FIS Global Recovery 11(2), Room No. 321, C.R. Services India Pvt. Ltd., S- Building, New Delhi 405 (LGF), Greater Kailash, Part-II, New Delhi PAN : AACCG0720A (Appellant) (Respondent) Appellant by Sh. Anil Kumar Sharma, Sr.DR Respondent by S/sh. S.D. Kapila & R.R. Maurya, Advocates Date of hearing 25.07.2016 Date of pronouncement 30.09.2016 ORDER PER O.P. KANT, A.M.:…

DCIT, Bangalore vs. M/S Hewlett Packard Global Soft Pvt. Ltd., Bangalore

In the result, the revenue’s appeal is dismissed

ITA 1371/BANG/2015[2009-10]Status: DisposedITAT Bangalore30 Sept 2016AY 2009-10

Bench: Shri Vijay Pal Rao & Shri S. Jayaraman

For Appellant: Shri Deepak R.L., Addl. CIT (D.R)For Respondent: Shri Anur Pai Dhungat, C.A
Section 10Section 10ASection 10B

…otal turnover as per the provisions of section 10A has held as under : “10. The Bombay High Court had an occasion to consider the meaning of the word 'total turnover' in the context of Section 10-A, in the case of CIT v. Gem Plus Jewellery India Ltd. [2011] 330 ITR 175 [2010] 194 Taxman 192 (Bom.). Interpreting sub-Section (4) of Section 10-A, it is held as under: Profits of the Export turnover in respect X business of the of the articles or things or Profits derived from undertaking computer software = export of articles or things or Computer software Total turnover of the business carried on by the undertak…

Vinati Oprganics Ltd, Mumbai vs. Addl CIT 8(3), Mumbai

In the result, assessee’s appeal stands partly allowed for the statistical purpose and that of the revenue stands dismissed

ITA 7177/MUM/2014[2011-12]Status: DisposedITAT Mumbai22 Sept 2016AY 2011-12

Bench: Shri Rajendra & Shri Amit Shukla

Section 1Section 10BSection 143(3)Section 14ASection 1OSection 40

…the deduction under section 10B has to be allowed on this enhanced income. This proposition he contended that, is duly supported by the decisions of the Hon’ble jurisdictional High Court in the case of CIT vs. Gem Plus Jewellery India Ltd, reported in [2011] 330 ITR 175 (Bom) and same has been 17 वन"त ओग"नी"स "ल"मटेड Vanati Oprganics Ltd ITA 7177/Mum/2014 ITA 7776/Mum/2014 followed and reiterated again by the Hon’ble Bombay High Court in the case of CIT vs Ntrance Customer Services Pvt. Ltd, in Income Tax Appeal No.1725 of 2013, order dated 24th November, 2015, wherein disallowance of 40(a)(i) was held to be eli…

ITO 27(3)(1), Navi Mumbai vs. Radium Creation, Navi Mumbai

In the result, Revenue’s appeal is dismissed and assessee’s appeal stands allowed

ITA 220/MUM/2015[2011-12]Status: DisposedITAT Mumbai16 Sept 2016AY 2011-12

Bench: Shri Saktijit Dey & Shri N.K. Pradhan

For Appellant: Shri Jitendra JainFor Respondent: Shri Goli Srinivas Rao
Section 10ASection 10BSection 40

…Assessing Officer under section 40(a)(ia) of the Act. Be that as it may, reverting back to the observations of the learned Commissioner (Appeals), it needs to be observed that the Hon'ble Jurisdictional High Court in CIT v/s Gem Plus Jewellery India Pvt. Ltd, 330 ITR 175 (Bom.), has held that any statutory disallowance made of deduction claimed by the assessee only goes to enhance the profit of the assessee, therefore, would be eligible to avail benefit under the provisions of section 10A / 10B. Thus, applying the said principle, the disallowance made under section 40(a)(ia) only enhance the business profit of th…

DCIT 15(3)(1), Mumbai vs. Roamware (India) P.Ltd, Mumbai

In the result appeal of the Revenue and CO by the assessee both are

ITA 1951/MUM/2015[2007-08]Status: DisposedITAT Mumbai09 Sept 2016AY 2007-08

Bench: Shri R.C. Sharma(Am) & Shri Sandeep Gosain (Jm) Assessment Year: 2007-08

For Appellant: Shri. Paras SarlaFor Respondent: Shri. Randhir Gupta
Section 10ASection 139(1)Section 143(1)Section 143(3)Section 143(3)(ii)Section 148

…nt of above 2 items, the total income of the appellant goes up and consequently it is entitled for enhanced deduction u/s 10A in view of enhanced profits. In support of this, the AR of the appellant relied on order of Gem Plus Jewellery India Ltd. reported in 330 ITR 175 and the decision of ITAT, Hyderabad in the case of Virtusa India Pvt. Ltd. reported in 41 taxamnn.com 244. 4.4 The CIT(A) while adjudicating ground of appeal No. 3 had directed the AO to allow enhanced deduction u/s 10A on the increased profit on account of disallowance made by the AO towards capital expenses and provision for gratuity. 4.5 The q…

M/S Affiliated Computer Services of India Private Limited, Bangalore vs. DCIT, Bangalore

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

ITA 931/BANG/2011[2007-08]Status: DisposedITAT Bangalore26 Aug 2016AY 2007-08

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri Keerthi Narayan, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER IT(TP)A No.931/Bang/2011 Assessment year : 2007-08 M/s. Affiliated Computer Services Vs. The Deputy Commissioner of Of India Pvt. Ltd., Income Tax, Level 6, ITPL Innovator Block, Circle 11(1), Whitefield Road, Bangalore. Bangalore – 560 066. PAN: AADCA 8386M APPELLANT RESPONDENT Appellant by : Shri Keerthi Narayan, CA Respondent by : Ms. Neera Malhotra, CIT(DR) Date of hearing : 25.07.2016 Date of Pronouncement : 26.08.2016 O R D E R Per Sunil Kumar Yadav, Judici…

M/S. Subex Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 1430/BANG/2010[2006-07]Status: DisposedITAT Bangalore12 Aug 2016AY 2006-07

Bench: Shri Sunil Kumar Yadav & Shri Abraham P. Georgeassessment Year : 2006-07

For Appellant: Shri Chythanya K.K., AdvocateFor Respondent: Dr. G. Manoj Kumar, Addl. CIT(DR)
Section 10ASection 10B

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER Assessment year : 2006-07 M/s. Subex Limited, Vs. The Deputy Commissioner of Adarsh Tech Park, Income Tax, Outer Ring Road, Circle 12(3), Devarabeesanahalli, Bangalore. Bangalore – 560 037. PAN: AABCS 9255R APPELLANT RESPONDENT Appellant by : Shri Chythanya K.K., Advocate Respondent by : Dr. G. Manoj Kumar, Addl. CIT(DR) Date of hearing : 25.05.2016 Date of Pronouncement : 12.08.2016 O R D E R Per Sunil Kumar Yadav, Judicial Member This appeal preferred by t…

Ultramarine & Pigments Ltd, Mumbai vs. CIT 7, Mumbai

In the result net result, appeal is allowed

ITA 2844/MUM/2013[2009-10]Status: DisposedITAT Mumbai10 Aug 2016AY 2009-10

Bench: Shri Jason P. Boaz (Am) & Shri Sandeep Gosain (Jm)

Section 10ASection 143(1)Section 143(2)Section 143(3)Section 263

…ed that this is nothing but an accretion to the sales made by the assessee. It is clearly derived from the export of computer software. It at all any support is required in this regard, reliance is placed upon the decision of the Bombay High Court reported in 330 ITR 175, CIT v Gem Plus Jewellery India Ltd. This decision clearly says that foreign exchange fluctuation is entitled to the deduction u/s 10A. A copy of the synopsis of this decision is enclosed at pages 21 to 23 of the Paper Book. The other 2 items of notice pay and sundry balances written hack are nothing but a reduction in the expenditure. They are t…

M/S. Dell International Services India (P) Ltd., Noida vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 5522/DEL/2011[2007-08]Status: DisposedITAT Delhi08 Aug 2016AY 2007-08

Bench: Sh. N. K. Saini, Am & Smt. Beena Pillai, Jm Ita No. 5522/Del/2011 : Asstt. Year : 2007-08 M/S Dell International Services Vs Deputy Commissioner Of Income India Pvt. Ltd., (Formerly Known As Tax, Circle-14(1), Room No. 415, Perot Systems Tsi (India) Pvt. Central Revenue Building, Ltd.), Plot No. 3, Sector-125, New Delhi Noida-201301 (Appellant) (Respondent) Pan No. Aaach1925Q Assessee By : Sh. Vishal Kalra, Adv. & Sh. S. S. Tomar, Adv. & Sh. G. Gupta, Adv. Revenue By : Sh. N. C. Swain, Cit Dr Date Of Hearing : 02.08.2016 Date Of Pronouncement : 08.08.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Vishal Kalra, Adv. & Sh. S. SFor Respondent: Sh. N. C. Swain, CIT DR
Section 10(34)Section 10ASection 143(1)Section 143(3)Section 14ASection 234D

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I-1’, NEW DELHI Before Sh. N. K. Saini, AM and Smt. Beena Pillai, JM ITA No. 5522/Del/2011 : Asstt. Year : 2007-08 M/s Dell International Services Vs Deputy Commissioner of Income India Pvt. Ltd., (formerly known as Tax, Circle-14(1), Room No. 415, Perot Systems TSI (India) Pvt. Central Revenue Building, Ltd.), Plot No. 3, Sector-125, New Delhi Noida-201301 (APPELLANT) (RESPONDENT) PAN No. AAACH1925Q Assessee by : Sh. Vishal Kalra, Adv. & Sh. S. S. Tomar, Adv. & Sh. G. Gupta, Adv. Revenue by : Sh. N. C. Swain, CIT DR Date of Hearing : 02.08.2016 Date of Prono…

Goldman Sachs (India) Securities Pvt Ltd, Mumbai vs. Addl.C.I.T. RG.3(1), Mumbai

In the result, appeal stands partly allowed

ITA 6912/MUM/2012[2008-09]Status: DisposedITAT Mumbai22 Jul 2016AY 2008-09

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri P.J. Pardiwala, Sr. CounselFor Respondent: Shri N.K. Chand
Section 143(3)Section 144C(13)Section 92C(2)

…. 79. We have considered the submissions of the parties and perused the material available on record. This issue is no more res integra, as different High Courts including the Hon'ble Jurisdictional High Court in CIT v/s Gem Plus Jewellery India Ltd., [2011] 330 ITR 175 (Bom.) as well as different benches of the Tribunal including Mumbai Benches have held that telecommunication charges have to be excluded both from export turnover as well as total turnover for computing deduction under section 10A. In fact, in assessee’s own case for assessment year 2009–10, in ITA no.222/Mum./2014, dated 30th November 2015, th…

DCIT, Bangalore vs. M/S Cisco Systems (India) Pvt. Ltd., Bangalore

In the result, the appeal of the revenue is partly allowed

ITA 1447/BANG/2013[2005-06]Status: DisposedITAT Bangalore15 Jul 2016AY 2005-06

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Appellant: Shri G.R. Reddy, CIT-I (D. R.)For Respondent: Shri Chavali Narayan, C. A
Section 10ASection 251Section 260A

…l in following the judgements rendered in the context of section 80HHC in interpreting section 10A when the principle underlying both these provisions is one and the same”. 4.2 The Hon’ble Mumbai High Court in the case of CIT Vs. Gem Plus Jewellery India Ltd. 330 ITR 175, in identical circumstances, held that since the export turnover forms part of the total turnover, if an item is excluded from the export turnover, the same should also be reduced from the total turnover to maintain parity between numerator and denominator while calculating deduction u/s 10A of the Act. The relevant finding of the Hon’ble Mumbai…