CIT v. HCL Technologies Ltd.

404 ITR 719Supreme Court of India2018#556 most cited

What is CIT v. HCL Technologies Ltd. authority for?

When calculating deductions under sections like 10A or 10AA, any expenses or items reduced from 'export turnover' in the numerator must also be reduced from 'total turnover' in the denominator to ensure consistent application of the deduction formula.

174

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. HCL Technologies Ltd. · HCL Technologies · 404 ITR 719 · Section 10A · Section 10AA · export turnover · total turnover · deduction computation · consistent exclusion · communication expenses · travel expenses

Also reported as

302 CTR 191

Sections most often in play

Section 10ASection 10AASection 143(3)Section 234BSection 234CSection 115-OSection 14ASection 194R
Read the full judgment

Issues it is cited on

section 10aworking capital adjustmentcomputer softwaretransfer pricing ordertested partycomparable companiesrelated party transactionsection 10aadividend distribution taxmost appropriate methodtnmmsection 40(a)(i)

Judgments citing CIT v. HCL Technologies Ltd.

Tata Consultancy Services Ltd, Mumbai vs. Asst CIT Ltu-1, Mumbai

In the result, appeal by the assessee is partly allowed for statistical purpose

ITA 1650/MUM/2016[2011-12]Status: DisposedITAT Mumbai06 Apr 2022AY 2011-12

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Ms. Vatsalaa Jha, CIT–DR
Section 115JSection 143(3)Section 144C(1)Section 144C(13)Section 144C(5)Section 2(43)Section 37Section 40Section 90Section 91

…. 97. We have considered the rival submissions and perused the material available on record. We find that this issue is no longer res integra and has been decided in favour of the taxpayer by the Hon'ble Supreme Court in CIT v/s HCL Technologies Ltd., [2018] 404 ITR 719 (SC), wherein the Hon'ble Court held that the expenditure excluded from the export turnover while computing the deduction under section 10A of the Act should also be reduced from the total turnover. We also find that the Hon'ble Jurisdictional High Court in assessee‟s own case in CIT v/s Tata Consultancy Services Ltd., ITA no.1788 of 2016, vide o…

JCIT, Bengaluru vs. M/S Abb Ltd., Bengaluru

In the result, the appeal filed the assessee is partly allowed and the appeal filed the Revenue is dismissed

ITA 1837/BANG/2013[2008-09]Status: DisposedITAT Bangalore28 Mar 2022AY 2008-09

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Percy Pardiwala, Sr.AdvocateFor Respondent: Sri Dilip, Advocate and Standing Counsel
Section 14A

…g the claim of assessee of customs duty included in the closing stock u/s 43B.” 8. As regards the issue raised in ground 2 is concerned, we notice that the same is no longer res integra. The Hon’ble Apex Court in the case of HCL Technologies Ltd. reported in 404 ITR 719 (SC) has held that when expenditure is reduced from export turnover, the same should be reduced also from the total turnover while computing deduction u/s 10A of the I.T.Act. In view of the judgment of the Hon’ble Apex Court in the case of HCL Technologies Ltd. (supra), we hold that the CIT(A) is justified in directing the A.O. to reduce expendit…

Abb India Ltd., Bengaluru vs. Addl.C.I.T, Bengaluru

In the result, the appeal filed the assessee is partly allowed and the appeal filed the Revenue is dismissed

ITA 1808/BANG/2013[2008-09]Status: DisposedITAT Bangalore28 Mar 2022AY 2008-09

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Percy Pardiwala, Sr.AdvocateFor Respondent: Sri Dilip, Advocate and Standing Counsel
Section 14A

…g the claim of assessee of customs duty included in the closing stock u/s 43B.” 8. As regards the issue raised in ground 2 is concerned, we notice that the same is no longer res integra. The Hon’ble Apex Court in the case of HCL Technologies Ltd. reported in 404 ITR 719 (SC) has held that when expenditure is reduced from export turnover, the same should be reduced also from the total turnover while computing deduction u/s 10A of the I.T.Act. In view of the judgment of the Hon’ble Apex Court in the case of HCL Technologies Ltd. (supra), we hold that the CIT(A) is justified in directing the A.O. to reduce expendit…

M/S Ul India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result, appeal of the Assessee is partly allowed

ITA 655/BANG/2016[2011-12]Status: DisposedITAT Bangalore24 Feb 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.574/Bang/2015 Assessment Year : 2010-11 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Kalyani Platina – Block I, 3Rd Floor, 24, Epip Circle -7(1)(1), Zone, Phase – 2Nd, Whitefield, Bengaluru. Bengaluru – 560 066. Pan : Aaacu 2468 F Appellant Respondent It(Tp)A No.378/Bang/2015 Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Appellant Respondent C.O.No.127/Bang/2015 (In It(Tp)A No.378/Bang/2015) Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Cross Objector Respondent It(Tp)A No.655/Bang/2016 Assessment Year : 2011-12 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Bengaluru – 560 066. Circle -7(1)(1), Pan : Aaacu 2468 F Bengaluru. Appellant Respondent

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C(13)Section 92Section 92C

…are in accordance with the aforesaid binding decision of the jurisdictional High Court in CIT v. Tata Elxsi Ltd., reported in [2012] 349 ITR 98 (Kar) which subsequently came to be upheld by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. 404 ITR 719 (SC). Therefore, in the light of the above judgment, the Assessee’s ground is allowed. 71. As far as Ground No.D 1 is concerned, the same is consequential to the order in AY 2009-10 and therefore the Assessee is entitled to claim depreciation on foreign exchange loss disallowed as capital expenditure. The AO is directed to allow the same. 72. G…

Ul India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal of the Assessee is partly allowed

ITA 574/BANG/2015[2010-11]Status: DisposedITAT Bangalore24 Feb 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.574/Bang/2015 Assessment Year : 2010-11 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Kalyani Platina – Block I, 3Rd Floor, 24, Epip Circle -7(1)(1), Zone, Phase – 2Nd, Whitefield, Bengaluru. Bengaluru – 560 066. Pan : Aaacu 2468 F Appellant Respondent It(Tp)A No.378/Bang/2015 Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Appellant Respondent C.O.No.127/Bang/2015 (In It(Tp)A No.378/Bang/2015) Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Cross Objector Respondent It(Tp)A No.655/Bang/2016 Assessment Year : 2011-12 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Bengaluru – 560 066. Circle -7(1)(1), Pan : Aaacu 2468 F Bengaluru. Appellant Respondent

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C(13)Section 92Section 92C

…are in accordance with the aforesaid binding decision of the jurisdictional High Court in CIT v. Tata Elxsi Ltd., reported in [2012] 349 ITR 98 (Kar) which subsequently came to be upheld by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. 404 ITR 719 (SC). Therefore, in the light of the above judgment, the Assessee’s ground is allowed. 71. As far as Ground No.D 1 is concerned, the same is consequential to the order in AY 2009-10 and therefore the Assessee is entitled to claim depreciation on foreign exchange loss disallowed as capital expenditure. The AO is directed to allow the same. 72. G…

DCIT, Bangalore vs. M/S U.L. India Pvt. Ltd., Bangalore

In the result, appeal of the Assessee is partly allowed

ITA 378/BANG/2015[2010-11]Status: DisposedITAT Bangalore24 Feb 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.574/Bang/2015 Assessment Year : 2010-11 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Kalyani Platina – Block I, 3Rd Floor, 24, Epip Circle -7(1)(1), Zone, Phase – 2Nd, Whitefield, Bengaluru. Bengaluru – 560 066. Pan : Aaacu 2468 F Appellant Respondent It(Tp)A No.378/Bang/2015 Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Appellant Respondent C.O.No.127/Bang/2015 (In It(Tp)A No.378/Bang/2015) Assessment Year : 2010-11 The Deputy Commissioner Of Income Tax, Vs. M/S. Ul India Pvt. Ltd., Circle -7(1)(1), Bengaluru – 560 066. Bengaluru. Pan : Aaacu 2468 F Cross Objector Respondent It(Tp)A No.655/Bang/2016 Assessment Year : 2011-12 M/S. Ul India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Bengaluru – 560 066. Circle -7(1)(1), Pan : Aaacu 2468 F Bengaluru. Appellant Respondent

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144C(13)Section 92Section 92C

…are in accordance with the aforesaid binding decision of the jurisdictional High Court in CIT v. Tata Elxsi Ltd., reported in [2012] 349 ITR 98 (Kar) which subsequently came to be upheld by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. 404 ITR 719 (SC). Therefore, in the light of the above judgment, the Assessee’s ground is allowed. 71. As far as Ground No.D 1 is concerned, the same is consequential to the order in AY 2009-10 and therefore the Assessee is entitled to claim depreciation on foreign exchange loss disallowed as capital expenditure. The AO is directed to allow the same. 72. G…

M/S First American (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-11(3), Bangalore

In the result, appeal of the Revenue is dismissed and that of the assessee is partly allowed

ITA 43/BANG/2018[2010-11]Status: DisposedITAT Bangalore02 Feb 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT-I(DR)(ITAT), Bengaluru
Section 10A

…facts. The disallowance made by the AO is, therefore, directly contrary to the aforesaid decision of the jurisdictional High Court in CIT v. Tata Elxsi Ltd. which has now been affirmed by the Hon’ble Supreme Court in CIT v. HCL Technologies reported in [2018] 404 ITR 719 (SC). Therefore, in the light of the above judgment, the above grounds in the Revenue’s appeal are dismissed. 47. In the result, appeal of the Revenue is dismissed and that of the assessee is partly allowed. Pronounced in the open court on the date mentioned on the caption page. (CHANDRA POOJARI) Vice President Bangalore, Dated: 02.02.2022. /NS/…

Deputy Commissioner of Income Tax, Circle-3(1)(1), Bengaluru vs. M/S First American (India) Pvt Ltd, Bengaluru

In the result, appeal of the Revenue is dismissed and that of the assessee is partly allowed

ITA 2586/BANG/2017[2010-11]Status: DisposedITAT Bangalore02 Feb 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Shri Chandra Poojari

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT-I(DR)(ITAT), Bengaluru
Section 10A

…facts. The disallowance made by the AO is, therefore, directly contrary to the aforesaid decision of the jurisdictional High Court in CIT v. Tata Elxsi Ltd. which has now been affirmed by the Hon’ble Supreme Court in CIT v. HCL Technologies reported in [2018] 404 ITR 719 (SC). Therefore, in the light of the above judgment, the above grounds in the Revenue’s appeal are dismissed. 47. In the result, appeal of the Revenue is dismissed and that of the assessee is partly allowed. Pronounced in the open court on the date mentioned on the caption page. (CHANDRA POOJARI) Vice President Bangalore, Dated: 02.02.2022. /NS/…

M/S Robert Bosch Engineering and Business Solutions Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by assessee stands allowed as indicated above and the appeal filed by revenue stands dismissed

ITA 608/BANG/2016[2011-12]Status: DisposedITAT Bangalore02 Feb 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 608/Bang/2016 Assessment Year : 2011-12 M/S. Robert Bosch The Deputy Engineering & Business Commissioner Of Solutions Pvt. Ltd., Income Tax, #123, Industrial Layout, Large Tax Payers Unit, Hosur Road, Koramangala, Circle 1, Bangalore – 560095. Vs. Bangalore. Pan: Aaacr7108R Appellant Respondent & It(Tp)A No. 445/Bang/2016 Assessment Year : 2011-12 (By Revenue) : Shri Percy Padiwala, Sr. Assessee By Advocate : Shri Sumer Singh Meena, Cit Revenue By Dr (Osd) Date Of Hearing : 20-12-2021 Date Of Pronouncement : 02-02-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By Assessee As Well As Revenue Against The Final Assessment Order Dated 28.01.2016 By The Ld.Dcit, Ltu, Circle -1, Bangalore U/S. 143(3) R.W.S. 144C Of The Act For Assessment Year 2011-12. In Revenue’S Appeal, The Following Grounds Are Raised. “1. The Directions Of Drp Is Opposed To Law & Facts Of The Case.

Section 10ASection 143(3)Section 144CSection 14ASection 80J

…uld be deducted both from export turnover and total turnover. In any case, it is now settled that the amount reduced from the export turnover has to be reduced from the total turnover also as held by Hon’ble Supreme Court in the case of HCL Technologies Ltd, (404 ITR 179)(SC). Page 22 of 33 IT(TP)A Nos. 445 & 608/Bang/2016 Accordingly, the decision rendered by Ld CIT(A) on this issue does not require interference.” Respectfully following the above view, we remand this issue to the Ld.AO to compute the deduction u/s. 10A in accordance with the principles laid down by the Hon’ble Supreme Court in case of HCL Techn…

DCIT, Bangalore vs. M/S Robert Bosch Engineering & Business Solutions Private Limited, Bangalore

In the result, the appeal filed by assessee stands allowed as indicated above and the appeal filed by revenue stands dismissed

ITA 445/BANG/2016[2011-12]Status: DisposedITAT Bangalore02 Feb 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 608/Bang/2016 Assessment Year : 2011-12 M/S. Robert Bosch The Deputy Engineering & Business Commissioner Of Solutions Pvt. Ltd., Income Tax, #123, Industrial Layout, Large Tax Payers Unit, Hosur Road, Koramangala, Circle 1, Bangalore – 560095. Vs. Bangalore. Pan: Aaacr7108R Appellant Respondent & It(Tp)A No. 445/Bang/2016 Assessment Year : 2011-12 (By Revenue) : Shri Percy Padiwala, Sr. Assessee By Advocate : Shri Sumer Singh Meena, Cit Revenue By Dr (Osd) Date Of Hearing : 20-12-2021 Date Of Pronouncement : 02-02-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By Assessee As Well As Revenue Against The Final Assessment Order Dated 28.01.2016 By The Ld.Dcit, Ltu, Circle -1, Bangalore U/S. 143(3) R.W.S. 144C Of The Act For Assessment Year 2011-12. In Revenue’S Appeal, The Following Grounds Are Raised. “1. The Directions Of Drp Is Opposed To Law & Facts Of The Case.

Section 10ASection 143(3)Section 144CSection 14ASection 80J

…uld be deducted both from export turnover and total turnover. In any case, it is now settled that the amount reduced from the export turnover has to be reduced from the total turnover also as held by Hon’ble Supreme Court in the case of HCL Technologies Ltd, (404 ITR 179)(SC). Page 22 of 33 IT(TP)A Nos. 445 & 608/Bang/2016 Accordingly, the decision rendered by Ld CIT(A) on this issue does not require interference.” Respectfully following the above view, we remand this issue to the Ld.AO to compute the deduction u/s. 10A in accordance with the principles laid down by the Hon’ble Supreme Court in case of HCL Techn…

Mps Technologies Limited, Chennai vs. ACIT, Chennai

Appeal stand dismissed whereas the assessee’s appeal stands partly allowed in terms of our above order

ITA 1385/CHNY/2014[2009-10]Status: DisposedITAT Chennai31 Jan 2022AY 2009-10

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita No.1385/Chny/2014 (िनधा4रण वष4 / Assessment Year: 2009-10) M/S. Mps Technologies Ltd. Acit (Now Merged With Mps Ltd.) Company Circle-Iv(3), बनाम/ Rr Tower-4, 4Th Floor Super A, Chennai. Vs. 16&17, Tvk Industrial Estate, Guindy, Chennai – 600 032. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaecm-0205-A (अपीलाथ"/Appellant) : (""थ" / Respondent) & आयकर अपील सं./ Ita No.1120/Chny/2014 (िनधा4रण वष4 / Assessment Year: 2009-10) Acit M/S. Mps Technologies Ltd. Company Circle-Iv(3), (Now Merged With Mps Ltd.) बनाम/ Rr Tower -4, 4Th Floor Super A, Chennai. Vs. 16&17, Tvk Industrial Estate, Guindy, Chennai – 600 032. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaecm-0205-A (अपीलाथ"/Appellant) : (""थ" / Respondent)

For Appellant: Shri S.P. Chidambaram (Advocate)-Ld. ARFor Respondent: Shri S. Palani Kumar- Ld. CIT-DR
Section 10ASection 143(3)Section 144C(5)

…the technical services outside India are to be excluded both from the export turnover and from the total turnover, which are the numerator and the denominator respectively in the formula. The Hon’ble Supreme Court in the case of CIT V/s HCL Technologies Ltd. (404 ITR 719) held that expenses excluded from export turnover have to be excluded from total turnover also otherwise any other interpretation would make the formula unworkable and absurd. Therefore, such deduction shall be allowed from total turnover in same proportion as well. This decision has been followed by Hon’ble High Court of Madras in various subseq…

ACIT, Chennai vs. Mps Technolgoies Ltd., Chennai

Appeal stand dismissed whereas the assessee’s appeal stands partly allowed in terms of our above order

ITA 1120/CHNY/2014[2009-10]Status: DisposedITAT Chennai31 Jan 2022AY 2009-10

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita No.1385/Chny/2014 (िनधा4रण वष4 / Assessment Year: 2009-10) M/S. Mps Technologies Ltd. Acit (Now Merged With Mps Ltd.) Company Circle-Iv(3), बनाम/ Rr Tower-4, 4Th Floor Super A, Chennai. Vs. 16&17, Tvk Industrial Estate, Guindy, Chennai – 600 032. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaecm-0205-A (अपीलाथ"/Appellant) : (""थ" / Respondent) & आयकर अपील सं./ Ita No.1120/Chny/2014 (िनधा4रण वष4 / Assessment Year: 2009-10) Acit M/S. Mps Technologies Ltd. Company Circle-Iv(3), (Now Merged With Mps Ltd.) बनाम/ Rr Tower -4, 4Th Floor Super A, Chennai. Vs. 16&17, Tvk Industrial Estate, Guindy, Chennai – 600 032. "थायी लेखा सं./जीआइ आर सं./Pan/Gir No. Aaecm-0205-A (अपीलाथ"/Appellant) : (""थ" / Respondent)

For Appellant: Shri S.P. Chidambaram (Advocate)-Ld. ARFor Respondent: Shri S. Palani Kumar- Ld. CIT-DR
Section 10ASection 143(3)Section 144C(5)

…the technical services outside India are to be excluded both from the export turnover and from the total turnover, which are the numerator and the denominator respectively in the formula. The Hon’ble Supreme Court in the case of CIT V/s HCL Technologies Ltd. (404 ITR 719) held that expenses excluded from export turnover have to be excluded from total turnover also otherwise any other interpretation would make the formula unworkable and absurd. Therefore, such deduction shall be allowed from total turnover in same proportion as well. This decision has been followed by Hon’ble High Court of Madras in various subseq…

Societe Generale Global Solution Centre Pvt Ltd, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-6(1)(2), Bengaluru

In the result, the assessee’s appeal is partly allowed

ITA 2580/BANG/2017[2013-14]Status: DisposedITAT Bangalore21 Jan 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri T. Suryanarayana, Sr. CounselFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 10ASection 115JSection 143(3)Section 271Section 274

…puting the deduction u/s. 10AA of the Act and making a corresponding reduction in the total turnover. 13. After hearing both the parties, this issue is covered in favour of the assessee by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. 404 ITR 719 (SC) wherein it was held that when object of formula in section 10A for computation of deduction is to arrive at profit from export business, expenses excluded from export turnover have to be excluded from total turnover also; otherwise, any other interpretation makes formula unworkable and absurd and hence, such deduction shall be allowed from t…

Xchanging Solutions Limited, Bangalore vs. ITO, Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 556/BANG/2016[2011-12]Status: DisposedITAT Bangalore19 Jan 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

…ved at after excluding the communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. This has been confirmed by the Hon’ble Supreme Court in the case of HCL Technologies Ltd. 404 ITR 719 (SC). Being so, we dismiss the grounds raised by the revenue. AY 2011-12 [IT(TP)A No.556/Bang/2016] 24. The assessee has raised the following grounds:- “General 1. The order of the learned AO and directions of the Hon'ble DRP are based on incorrect interpretation of law and therefore are bad in law. 2. On the facts and in the circumstances of th…

ITO, Bangalore vs. M/S Xchanging Solutions Ltd., Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 402/BANG/2016[2011-12]Status: DisposedITAT Bangalore19 Jan 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

…ved at after excluding the communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. This has been confirmed by the Hon’ble Supreme Court in the case of HCL Technologies Ltd. 404 ITR 719 (SC). Being so, we dismiss the grounds raised by the revenue. AY 2011-12 [IT(TP)A No.556/Bang/2016] 24. The assessee has raised the following grounds:- “General 1. The order of the learned AO and directions of the Hon'ble DRP are based on incorrect interpretation of law and therefore are bad in law. 2. On the facts and in the circumstances of th…

Xchanging Solutions Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 492/BANG/2015[2010-11]Status: DisposedITAT Bangalore19 Jan 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

…ved at after excluding the communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. This has been confirmed by the Hon’ble Supreme Court in the case of HCL Technologies Ltd. 404 ITR 719 (SC). Being so, we dismiss the grounds raised by the revenue. AY 2011-12 [IT(TP)A No.556/Bang/2016] 24. The assessee has raised the following grounds:- “General 1. The order of the learned AO and directions of the Hon'ble DRP are based on incorrect interpretation of law and therefore are bad in law. 2. On the facts and in the circumstances of th…

DCIT, Bangalore vs. M/S Xchanging Solutions Ltd., Bangalore

In the result, the appeals of the assessee are partly allowed and that of the revenue are dismissed

ITA 459/BANG/2015[2010-11]Status: DisposedITAT Bangalore19 Jan 2022AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

For Appellant: Shri Vikram Raghavan, AdvocateFor Respondent: Shri Arunkumar, CIT(DR)(TP)(ITAT), Bengaluru
Section 10ASection 10A(4)Section 143(3)Section 155

…ved at after excluding the communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. This has been confirmed by the Hon’ble Supreme Court in the case of HCL Technologies Ltd. 404 ITR 719 (SC). Being so, we dismiss the grounds raised by the revenue. AY 2011-12 [IT(TP)A No.556/Bang/2016] 24. The assessee has raised the following grounds:- “General 1. The order of the learned AO and directions of the Hon'ble DRP are based on incorrect interpretation of law and therefore are bad in law. 2. On the facts and in the circumstances of th…

DCIT, Central Circle-1(2), Hyd, Hyderabad vs. Aurobindo Pharma Ltd., Hyd, Hyderabad

Appeal is dismissed in above terms

ITA 865/HYD/2016[2009-10]Status: DisposedITAT Hyderabad17 Nov 2021AY 2009-10

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri P.V.S.S.Prasad, ARFor Respondent: Shri Balakrishna, CIT-DR
Section 143(3)

…common order in AYs.2004-05, 2007-08 to 2009-10 involving this taxpayer itself decided on 15-12-2017 in the very terms against the department. We further note that the hon'ble apex court has also settled the issue in Addl.CIT Vs. HCL Technologies Ltd., (2018) 404 ITR 719 (SC) followed by the CBDT circular No.4/2018 setting it to rest in clarifying that such charges are to be excluded from both export as well as total turnover. We thus find no merit in the Revenue’s instant sole substantive grievance. No other ground has been pressed before us. 3. This Revenue’s appeal is dismissed in above terms. Order pronounc…

DCIT, Circle-17(2), Hyd, Hyderabad vs. Lgs Global Ltd., Hyd, Hyderabad

Appeal is dismissed in above terms

ITA 478/HYD/2015[2010-11]Status: DisposedITAT Hyderabad16 Nov 2021AY 2010-11

Bench: Shri S.S. Godara & Shri L. P. Sahu(Through Virtual Hearing) Dy. Commissioner Of Income Tax, Circle 17(2), Hyderabad. …..Appellant. Vs. M/S. Lgs Global Limited, (Formerly “Lanco Global Systems Ltd.”) (Presently “Lycose Internet Ltd.”) Hyderabad. Pan Aaacl5827B …..Respondent. Appellant By : Shri Yvst Sai (D.R) Respondent By : Shri P. Murali Mohana Rao. (A.R.) Date Of Hearing : 05.10.2021. Date Of Pronouncement : 16.11.2021. O R D E R Per Shri S.S. Godara, J.M. : This Revenue’S Appeal For Assessment Year 2010-11 Raises Against The Dcit, Circle 17(2), Hyderabad’S Assessment Framed In Furtherance To Dispute Resolution Panel (Drp), Hyderabad’S Directions

For Appellant: Shri YVST Sai (D.R)For Respondent: Shri P. Murali Mohana Rao. (A.R.)
Section 10ASection 143(3)

…telephone charges and statutory disallowances ought to be excluded both from export as well as total turnover. We find the instant latter grievance is no more res integra in light of hon'ble apex court decision in Addl. CIT Vs. HCL Technologies Limited (2018) 404 ITR 719 (SC) followed by the CBDT Circular 4 of 2018 dt.14.8.2018 that such an item(supra)) has to be excluded both from export as well as total turnover. We thus affirm the learned DRP’s directions under challenge for this precise reason alone. 4 No other ground has been pressed before us. 5. This Revenue’s appeal is dismissed in above terms. Order…

Gofrugal Technoloigies Private Limited, Chennai vs. ACIT Corporate Circle 3(3), Chennai

The appeal stand allowed

ITA 1366/CHNY/2018[2008-09]Status: DisposedITAT Chennai12 Oct 2021AY 2008-09

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1366/Chny/2018 (िनधा"रण वष" / Assessment Year: 2008-09) M/S. Gofrugal Technologies Pvt. Ltd. Acit (Formerly Zoha Development Centre Corporate Circle-3(3), बनाम/ India (P) Ltd.), Chennai. “Shri Narayana Complex” No.11, Vs. Sarathy Nagar, Vijaya Nagar Chennai-600 042. थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacca-4341-F (अपीलाथ$/Appellant) : ('(थ$ / Respondent) अपीलाथ$कीओरसे/ Appellant By : Shri N.V.Balaji, Adv. '(थ$कीओरसे/Respondent By : Shri Ar.V.Sreenivasan, Addl.Cit सुनवाईकीतारीख/ : 12/10/2021 Date Of Hearing घोषणाकीतारीख / : 12/10/2021 Date Of Pronouncement

For Appellant: Shri N.V.Balaji, AdvFor Respondent: Shri AR.V.Sreenivasan, Addl.CIT
Section 10A

…ing export turnover which form part of numerator, the same should also be deducted while computing total turnover which form part of the denominator. 3. We find that this issue is covered by the decision of Hon’ble Apex Court in CIT V/s HCL Technologies Ltd. (404 ITR 719) wherein it has been held that when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise, any other interpretation makes the formula unworkable and absurd. Therefore, such deduction shall be allowed from the total turnover in same…