CIT v. Tata Elxsi Ltd.

DCIT, Bangalore vs. M/S July Systems & Technologies Pvt. Ltd., Bangalore

In the result, Revenue’s appeals for both Assessment Years 2008-09 & 2009-10 are dismissed

…ecommunication and travel expenses from both export turnover and total turnover while computing the deduction under Section 10A of the Act by placing reliance on the decision of the Hon'ble High Court of Karnataka in the case of CIT Vs. Tata Elxsi Ltd. (2012) 349 ITR 98 (Kar). It is submitted that this decision has not been accepted by the Department and the SLP filed by the Department is pending disposal before the Hon'ble Apex Court. 5.2 We have heard both the learned Departmental Representative and the learned Authorised Representative in the matter. Following the decision rendered by the Hon'ble High Court of…

DCIT, Bangalore vs. M/S Kalki Communications Tech Ltd., Bangalore

In the result, the appeal by the Revenue is dismissed

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. Georgeassessment Year : 2011-12

…es from the export turnover. The assessee contended that it should be reduced from the total turnover also. 4. The ld. CIT(Appeals) held that the issue is covered by the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd., 349 ITR 98 (Kar) which is a binding precedent and respectfully following the same, he directed the AO to follow the ratio laid down in the aforesaid judgment while computing deduction u/s. 10A of the Act. Aggrieved, the Revenue has raised the following effective ground:- 5. “2. On the facts and circumstances of the case, the ld. CIT(A) has erred in directin…

M/S Aon Specialist Services Pvt. Ltd., Bangalore vs. ITO, Bangalore

In the result, the appeal of the Revenue is dismissed

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. George

…w is now well-settled in favour of the tax-payer in regard to the deduction of expenses from export turnover vis-a-vis total turnover for purposes of calculating the deduction u/s l0B of the Act. The Hon’ble High Court of Karnataka in Tata Elxsi Ltd. v. ACIT (349 ITR 98) has held that, where certain expenses are excluded from the export turnover for purposes of calculating deductions admissible under the Act, such expenses should also be excluded from the total turnover as the export turnover forms part of the total turnover. In the light of the decision of the jurisdictional High Court referred to above, the AO…

Income Tax Officer, Ward-11(1), Bangalore vs. M/S Aon Specialist Services P Ltd, Bangalore

In the result, the appeal of the Revenue is dismissed

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. George

…w is now well-settled in favour of the tax-payer in regard to the deduction of expenses from export turnover vis-a-vis total turnover for purposes of calculating the deduction u/s l0B of the Act. The Hon’ble High Court of Karnataka in Tata Elxsi Ltd. v. ACIT (349 ITR 98) has held that, where certain expenses are excluded from the export turnover for purposes of calculating deductions admissible under the Act, such expenses should also be excluded from the total turnover as the export turnover forms part of the total turnover. In the light of the decision of the jurisdictional High Court referred to above, the AO…

Deputy Commissioner of Income Tax, Circle-11(2), Bangalore vs. M/S Celstream Technolgoies P Ltd, Bangalore

Bench: Shri Vijay Pal Rao & Shri G.Manjunatha

…order passed by the CIT u/s 263 are as under: 1) “The order of the CIT (A) is opposed to and the facts and circumstances of the case. 2) The CIT(A) erred in deleting the AO to follow the ratio laid down by the Hon'ble Court in the case of Tata Elxsi Limited 349 ITR 98 and exclude the data link charges of Rs.1,94,39,480/- from the total turnover also while computing the deduction u/s IOA of the I.T. Act, without appreciating the fact that there is no provision iii Section 1 OA that such expenses should be reduced from the total turnover also, as clause(iv) of the explanation to Section 10A provides that such exp…

DCIT vs. M/S Bearing Point Business Consulting Pvt. Ltd

In the result, the appeal of the revenue is dismissed

Bench: Shri Vijay Pal Rao & Shri G.Manjunatha

…ised the following grounds. 1) “The order of the Dispute Resolution Panel is opposed to law and the facts and circumstances of the case. 2) The DRP erred in directing the AO to follow the ratio laid down by the Hon'ble Court in the case of Tata Elxsi Limited 349 ITR 98 and exclude Rs 59,84,245/- of telecommunication expenses and Rs 15,72,520/- of travel expenses incurred in foreign currency attributable to delivery of software services outside India from the total turnover also while computing the deduction u/s 10A of the I.T. Act, without appreciating the fact that there is no provision in section 10A that such…

M/S Meritor L vs. India (P) Ltd., Bangalore

In the result, appeal of the assessee is partly allowed

Bench: Shri. Abraham P. George & Shri. Vijaypal Raoi.T(Tp).A No.1231/Bang/2011 (Assessment Year : 2007-08) M/S. Meritor Lvs India(P) Ltd, No.69, A1- Ameen Towers, 3Rd Floor, Hosur Road, Near Lalbagh Main Road, Bangalore 560 027 .. Appellant Pan : Aabcm9623K V. Asst. Commissioner Of Income-Tax, Circle -12(1), Bangalore .. Respondent Assessee By : Shri. Amit B. Jain, Ca Revenue By : Shri. J. P. S. Bindra, Cit - Dr Heard On : 12.10.2015 Pronounced On : 16.10.2015 O R D E R Per Abraham P. George: In This Appeal Filed By Assessee Directed Against An Assessment Order Passed U/S.143(3) R.W.S.144C Of The Income-Tax Act, 1961 (‘The Act’ In Short), It Has Filed A Set Of Concise Grounds In Lieu Of The Original Grounds Filed.

…n in Explanation 2 (iv) to Section 10A does not warrant such an interpretation. However in respect of parity between the export turnover and total turnover, in view of the decision of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd [349 ITR 98], assessee has to succeed. We direct the AO / TPO to exclude what has been excluded from the export turnover from the total turnover also while computing deduction u/s.10A of the Act. Grounds 6 and 7 are treated as partly allowed for statistical purpose. 19. In so far as ground 8 is concerned, Ld. AR submitted that in view of the decision of Hon’b…

DCIT vs. M/S Supprt .Com India Pvt. Ltd., Bangalore

In the result, the appeal filed by the Revenue as well as the assessee are partly allowed

Bench: Shri Abraham P George & Shri Vijay Pal Rao

…lude the said expenses from the total turnover as well and then re-compute the deduction under section 10A. 4.2 At the outset, we note that this issue is now covered by the decision of the Hon'ble jurisdictional High Court in the case of ACIT vs. Tata Elxsi (349 ITR 98) wherein the Hon’ble High Court has held as under: IT(TP)A Nos.240 & 293/Bang/2013 M/s.Support.com India Pvt Ltd. Page 4 of 36 “From the aforesaid judgments, what emerges is that. there should be uniformity in the ingredients of both the numerator and she denominator of the formula, since otherwise it would produce anomalies or absurd results. S…

Support.Com India Pvt. Ltd vs. JCIT

In the result, the appeal filed by the Revenue as well as the assessee are partly allowed

Bench: Shri Abraham P George & Shri Vijay Pal Rao

…lude the said expenses from the total turnover as well and then re-compute the deduction under section 10A. 4.2 At the outset, we note that this issue is now covered by the decision of the Hon'ble jurisdictional High Court in the case of ACIT vs. Tata Elxsi (349 ITR 98) wherein the Hon’ble High Court has held as under: IT(TP)A Nos.240 & 293/Bang/2013 M/s.Support.com India Pvt Ltd. Page 4 of 36 “From the aforesaid judgments, what emerges is that. there should be uniformity in the ingredients of both the numerator and she denominator of the formula, since otherwise it would produce anomalies or absurd results. S…

DCIT, Bangalore vs. Synopsis India Pvt. Ltd., Bangalore

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T(Tp).A No.1107/Bang/2011 (Assessment Year : 2005-06) Deputy Commissioner Of Income-Tax, Circle – 12 (3), Bangalore ..Appellant V. Synopsis India P. Ltd, Rmz Infinity Tower Á’, 4Th & 5Th Floor, No.3, Old Madras Road, Benniganahalli, Bangalore 560016 ..Respondent Pan : Aabcs8847D I.T(Tp).A No.1093/Bang/2011 (Assessment Year : 2005-06) (By The Assessee) Assessee By : Shri. Dhanesh Bafna, Ca Revenue By : Shri. Farhat Hussain Qureshi, Cit -Dr Heard On : 08.09.2015 Pronounced On : 08.10.2015 O R D E R Per Abraham P. George:

…hile computing the deduction available u/s.10A of the Income-tax Act, 1961 (‘the Act’ in short). 04. We find that the direction given by the CIT (A) is in consonance with the judgment of Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd (349 ITR 98). Their Lordships held that parity has to be there between export turnover and total turnover while excluding items from the export turnover. Filing SLP before the Hon’ble Apex Court, would not be a sufficient reason not to follow the jurisdictional High Court judgment. Accordingly ground 2 of the Revenue is dismissed. 05. In its ground 3, grieva…

DCIT, Bangalore vs. M/S Unisys India (P) Limited, Bangalore

Bench: Shri N.V. Vasudevan & Shri Abraham P. George

…e both from the export turnover and also from the total turnover, the revenue has raised ground No.2 before the Tribunal. 6. The issue raised by the Revenue in ground No.2 has now been decided by the Hon’ble High Court of Karnataka in the case of Tata Elxsi 349 ITR 98 (Kar) wherein it has been held that whatever is excluded from export turnover should also be excluded from the total turnover. In view of the aforesaid decision of the Hon’ble High Court of Karnataka, we are of IT(TP)A Nos.67 & 70/Bang/2015 Page 4 of 37 the view that ground No.2 raised by the revenue in its appeal is without any merit and the sam…

M/S Unisys India Private Limited, Bangalore vs. DCIT, Bangalore

Bench: Shri N.V. Vasudevan & Shri Abraham P. George

…e both from the export turnover and also from the total turnover, the revenue has raised ground No.2 before the Tribunal. 6. The issue raised by the Revenue in ground No.2 has now been decided by the Hon’ble High Court of Karnataka in the case of Tata Elxsi 349 ITR 98 (Kar) wherein it has been held that whatever is excluded from export turnover should also be excluded from the total turnover. In view of the aforesaid decision of the Hon’ble High Court of Karnataka, we are of IT(TP)A Nos.67 & 70/Bang/2015 Page 4 of 37 the view that ground No.2 raised by the revenue in its appeal is without any merit and the sam…

Software Ag Bangalore Technologies Private Limited, Bangalore vs. ITO, Bangalore

In the result, the appeal by the Assessee is partly allowed

Bench: Shri N. V. Vasudevan & Shri.Abraham P.Georgeit(Tp)A No.1306/Bang/2011 Assessment Year : 2007-08

…to exclude the said expenses from the total turnover also, the Assessee has raised grounds No.2 & 3 before the Tribunal. 6. The issue raised by the Assessee in ground No.3 has now been decided by the Hon’ble High Court of Karnataka in the case of Tata Elxsi 349 ITR 98 (Kar) wherein it has been held that whatever is excluded from export turnover should also be excluded from the total turnover. In view of the aforesaid decision of the Hon’ble High Court of Karnataka, we are of the view that the ground No.2 raised by the assessee in its appeal does not require any adjudication. Ground No.3 raised by the Assessee i…

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

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Vijaypal Rao & Shri Jason P Boazthe Dy. Commissioner Of Income-Tax, Circle-12(5), Bangalore. . Appellant Vs. M/S Unisys India Pvt. Ltd., #4Th & 5Th Floor, Block “Wrap” Sjr Park, White Filed Area, No.13,14 & 15, , K.R Puram, Bangalore-560 066. . Respondent Appellant By : Shri Saravanan, Jcit Respondent By : Shri Madhukar Dhakappa, C.A Date Of Hearing : 15-9-2015 Date Of Pronouncement : 24-9-2015

…the deduction u/s 10A. On appeal, the CIT(A) has directed the AO to exclude the said expenditure from the total turnover as well while computing the deduction u/s 10A by following the decision of Hon’ble Jurisdictional High Court in the case of Tata Elxsi, 349 ITR 98. At the outset we note that this issue is now covered by the decision of Hon’ble Jurisdictional High Court in the case of Tata Elxsi (Supra), the relevant finding of the Hon’ble jurisdictional High Court reads as follows:- “………..Section 10A is enacted as an incentive to exporters to enable their products to be competitive in the global market an…

Amd India Private Limited, Bangalore vs. ITO, Bangalore

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

Bench: Shri N.V. Vasudevan & Shri Abraham P. George

…in ground No.8( c)) that expenses that are reduced from the export turnover should also be reduced from the total turnover and in this regard has placed reliance on the decision of the Hon’ble Karnataka High Court in the case of CIT v. Tata Elxsi Ltd [2012] 349 ITR 98 (Karn). 35. We have heard the ld. counsel for the assessee and the ld. DR on the issues raised in concise ground No.8. Taking into consideration the decision rendered by the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2012] 349 ITR 98 (Karn), we are of the view that it would be just and appropriate to direct the Assess…

Hewlett- Packard Globalsof Private Limited, Bangalore vs. DCIT, Bangalore

In the result appeal of the assessee is partly allowed for statistical purpose

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T(Tp).A No.1031/Bang/2011 (Assessment Year : 2007-08) Hewlett- Packard (India) Globalsoft P. Ltd, Plot No.39/40, Electronic City – Phase-Ii Hosur Road, Bangalore 560 100 ..Appellant Pan : Aaacd4078L V. Deputy Commissioner Of Income-Tax, Central Circle -11(4), Bangalore .. Respondent Assessee By : Shri. Ajit Kumar Jain, Ca Revenue By : Shri. G. R. Reddy, Cit – Dr-I Heard On : 01.09.2015 Pronounced On : 23.09.2015 O R D E R Per Abraham P. George:

…n in Explanation 2 (iv) to Section 10A does not warrant such an interpretation. However in respect of parity between the export turnover and total turnover, in view of the decision of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd [349 ITR 98], assessee has to succeed. We direct the AO / TPO to exclude what has been excluded from the export turnover from the total turnover also while computing deduction u/s.10A of the Act. Grounds 5 and 6 are treated as allowed for statistical purpose. IT(TP)A.1031/Bang/2011 Page - 58 54. Vide its ground 7, grievance of the assessee is that Section 1…

M/S. Misys Software Solutions (India) Pvt. Ltd., Bangalore vs. ITO, Bangalore

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

…in Ground No.8 has also made an alternate plea that the expenses that are reduced from export turnover should also be reduced from total turnover, placing reliance on the decision of the Hon'ble Karnataka High Court in the case of CIT V Tata Elxsi Ltd. (2012) 349 ITR 98 (Kar). 10.2 We have heard both the learned Authorised Representative and the learned Departmental Representative in the matter. Taking into consideration the decision rendered by 25 IT(TP)A No.1425/Bang/2010 the Hon'ble High Court of Karnataka in the case of Tata Elxsi Ltd. (supra), we are of the view that it would be just and appropriate to direc…