CIT v. Tata Elxsi Ltd.

DCIT, Bangalore vs. M/S Spa Computers Pvt. Ltd., Bangalore

In the result, appeal of the Revenue is dismissed

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

…6. Vide its grounds 4 and 5, Revenue is aggrieved that CIT (A) directed parity between export turnover and total turnover for working out deduction u/s.10A of the Act, relying on the decision of the Hon’ble jurisdictional High Court in CIT v. Tata Elxsi Ltd, (349 ITR 98). 07. We find from the grounds raised by the Revenue that they have moved the Hon’ble Apex Court against the judgment of the Hon’ble jurisdictional High Court in CIT v. Tata Elxsi Ltd, (349 ITR 98). CIT (A) had only directed deduction of the expenditure excluded from export turnover also from the total turnover while computing deduction u/s.10A o…

Deputy Commissioner of Income Tax, Bangalore vs. M.S Sasken Communications Technologies Ltd, Bangalore

In the result, the appeals filed by the Revenue are dismissed and

Bench: Shri Vijaypal Rao & Shri Jason P Boazita Nos.1253 & 1254/Bang/2014 (Asst. Years - 2005-05 & 2006-07) The Dy. Commissioner Of Income-Tax, Circle-12(3), Bangalore. . Appellant Vs. M/S Sasken Communication Tech. Ltd., No.139/25, Ring Road, Domlur, Bangalore. . Respondent

…relating to travel and data communication services from the total turnover also and accordingly calculated the deduction available to the assessee u/s 10A. The CIT(A) has followed the decision of Hon’ble Jurisdictional High Court in the case of Tata Elxsi, 349 ITR 98. 19. At the outset, we note that this issue of exclusion of the expenses incurred in foreign exchange from the export turnover as well as from the total turnover is settled by the judgment of Hon’ble ITA Nos.1253 & 1254/B/14 CO Nos.32 & 33/B/15 15 Jurisdictional High Court in the case of Tata Elxsi (Supra), where in the Hon’ble High Court has…

DCIT, Bangalore vs. M/S Asm Technologies Limited, Bangalore

In the result, the appeal by the Revenue is dismissed

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2010-11

…rom the export turnover in accordance with the specific definition cannot be reduced from the total turnover. 4. On appeal by the assessee, the CIT(Appeals) following the decision of the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd., 349 ITR 98 (Karn), held that whatever is excluded from the export turnover, has also to be excluded from the total turnover. 5. Aggrieved by the order of the CIT(Appeals), the revenue is in appeal before the Tribunal. 6. The only grievance of the Revenue is that the decision of Hon'ble High Court of Karnataka in Tata Elxsi (supra) has not attained finali…

Deputy Commissioner of Income Tax, Bangalore vs. M/S Infosys Bpo Ltd, Bangalore

In the result, the appeal by the Revenue is dismissed, while the assessee’s appeal is allowed

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06

…deduction u/s. 10A of the Act. According to the Revenue, the aforesaid expenses should be excluded only from the export turnover and not from the total turnover. According to the Revenue, the decision of the Hon’ble High Court of Karnataka in Tata Elxsi Ltd., 349 ITR 98 in which it was held that whatever is excluded from the export turnover, should also be excluded from the total turnover, has not been accepted by the Revenue and a SLP has been filed before the Hon’ble Supreme Court and therefore the order of the CIT(Appeals) should be reversed. 4. The only grievance of the Revenue is that the decision of Hon'bl…

Infosys Bpo Ltd, Bangalore vs. Assistant Commissioner of Income Tax, Bangalore

In the result, the appeal by the Revenue is dismissed, while the assessee’s appeal is allowed

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06

…deduction u/s. 10A of the Act. According to the Revenue, the aforesaid expenses should be excluded only from the export turnover and not from the total turnover. According to the Revenue, the decision of the Hon’ble High Court of Karnataka in Tata Elxsi Ltd., 349 ITR 98 in which it was held that whatever is excluded from the export turnover, should also be excluded from the total turnover, has not been accepted by the Revenue and a SLP has been filed before the Hon’ble Supreme Court and therefore the order of the CIT(Appeals) should be reversed. 4. The only grievance of the Revenue is that the decision of Hon'bl…

DCIT, Bangalore vs. M/S Kodiak Networks India Pvt. Ltd., Bangalore

In the result, the appeal by the Revenue and cross-objection by the Assessee are partly allowed

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

…an alternate prayer 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) wherein the Hon’ble Court held that whatever is excluded from the export turnover should also be excluded from the total turnover for the purpose of computing deduction u/s.10A of the Act. The main prayer as well as the alternate prayer was rejected by the AO but the alternative prayer was allowed by the CIT(A). 38. We have heard the ld.…

DCIT, Bangalore vs. M/S Quality Enginnering & Software Technologies Pvt. Ltd., Bangalore

In the result, the appeal by the Revenue is dismissed

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2010-11

…om the export turnover in accordance with the specific definition cannot be reduced from the total turnover. 4. On appeal by the assessee, the CIT(Appeals) following the decision of the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd., 349 ITR 98 (Karn), held that whatever is excluded from the export turnover, has also to be excluded from the total turnover. Page 3 of 4 5. Aggrieved by the order of the CIT(Appeals), the revenue is in appeal before the Tribunal. 6. The only grievance of the Revenue is that the decision of Hon'ble High Court of Karnataka in Tata Elxsi (supra) has not atta…

ACIT, Bangalore vs. M/S Iron Mountain Information Management India (P) Ltd., Bangalore

Bench: Smt. P. Madhavi Devi & Shri Jason P Boaz

…total turnover by following the Hon’ble High Court’s decision even though it has not reached finality and SLP has been filed before the Hon’ble Supreme Court. We find that the jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd. reported in [2012] 349 ITR 98 has held that if any expenditure is to be excluded from the export turnover for the purposes of computation of deduction u/s 10A/10B, then the same is also to be excluded from the total turnover. We find that the CIT(A) has followed the decision of the jurisdictional High Court in granting relief to the assessee and since the order of the Hon’ble…

Sun Gard Solutions (India) Private Limited, Bangalore vs. ACIT, Bangalore

In the result, the assessee's appeal for Assessment Year 2008-09 is partly allowed

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazi.T.(T.P) A. No.1487/Bang/2012 (Assessment Year : 2008-09) M/S. Sun Gard Solutions (India) Pvt. Ltd., Vs. Assistant Commissioner Of 6Th Floor, Embassy Icon, Income Tax, Infantry Road, Circle 12(3), Bangalore. Bangalore-560 001 Pan Aaace 7476K Appellant Respondent.

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH “ B ” BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER I.T.(T.P) A. No.1487/Bang/2012 (Assessment Year : 2008-09) M/s. Sun Gard Solutions (India) Pvt. Ltd., Vs. Assistant Commissioner of 6th Floor, Embassy Icon, Income Tax, Infantry Road, Circle 12(3), Bangalore. Bangalore-560 001 PAN AAACE 7476K Appellant Respondent. Appellant By : Shri K.R. Vasudevan, Advocate. Respondent By : Shri Farhat Hussain Qureshi, CIT (D.R) Date of Hearing : 25.05.2015. Date of Pronouncement : 30.7.2015. O R D E R Per Shri Jason P. Boaz, A.M. : Th…

M/S. Thought Works Technologies (India) Pvt. Ltd., Bangalore vs. DCIT, Bangalore

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

Bench: Smt. P. Madhavi Devi & Shri Abraham P George

…n computing deduction u/s 10A of the Act. As we find that the alternative ground of appeal i.e. ground No.11 to grounds No.6 to 10 is covered in favour of the assessee by the decision of the jurisdictional High Court in the case of Tata Elxsi Ltd. reported in 349 ITR 98, respectfully following the same, we direct the AO to reduce these expenses both from export turnover as well as total IT(TP)A No.1239/Bang/2010 M/s.iGate Global Solutions Ltd., Page 17 of 20 turnover for computation of deduction u/s 10A of the Act. Thus grounds 6 to 10 are rejected and ground No.11 is allowed. 9. Ground No.12 is against the di…

M/S. I Gate Global Solutions Ltd., Bangalore vs. The Assistant Commissioner of Income Tax, Bangalore

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

Bench: Smt. P. Madhavi Devi & Shri Jason P Boaz

…elecommunication expenses, we find that it is in connection with delivery of computer software outside India and therefore not to be excluded from the export turnover. However, following the judgment of the jurisdictional High Court in the case of Tata Elxsi (349 ITR 98), we direct that the same should also be excluded IT(TP)A No.1239/Bang/2010 M/s.iGate Global Solutions Ltd., Page 21 of 24 from the total turnover for the purposes of computation of deduction u/s 10A of the Act. The assessee’s ground of appeal No.10 is allowed and ground No.11 is rejected and ground No.12 is treated as allowed. 8. As regards gr…

ITO, Bangalore vs. M/S Business Process Outsourcing (India) Pvt. Ltd., Bangalore

In the result, Revenue’s appeal for Assessment Year 2007-08 is dismissed

Bench: Smt. P. Madhavi Devi & Shri Jason P. Boazi.T.(T.P.) A. No.677/Bang/2012 (Assessment Year : 2007-08) Income Tax Officer, Ward 11(1), Bangalore. …. Appellant. Vs. M/S. Business Process Outsourcing (India) Pvt. Ltd., Tower 2D, Vrindavantech Village, Devarabeesanahalli, Orr, Bangalore-560 037. ….. Respondent. Pan Aabcb 5293N Appellant By : Shri G.R. Reddy, Cit-I (D.R) Respondent By : Smt. Mehtab, Advocate. Date Of Hearing : 22.7.2015. Date Of Pronouncement : 24.07.2015. O R D E R Per Shri Jason P. Boaz, A.M. : This Appeal By The Revenue Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-I, Bangalore Dt.2.3.2012 For Assessment Year 2007-08. 2. The Facts Of The Case, Briefly, Are As Under :- 2.1 The Assessee Company, In The Business Of Providing Software Development Services, Filed Its Return Of Income For Assessment Year 2007-08 On 30.10.2007 Declaring Nil Income After Claiming Deduction Under Section 10A Of The Income Tax Act, 1961 (In Short 'The Act'). The Return Was Processed Under Section 143(1) Of The Act & The Case Was Subsequently Taken Up

…penses amounting to Rs.4,13,20,502 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. Taking into consideration the decision rendered by the Hon'b…

DCIT, Bangalore vs. M/S Rambus Chip Technologies (India) Pvt. Ltd., Bangalore

In the result, the revenue’s appeal is dismissed and assessee’s appeal is partly allowed

Bench: Smt. P. Madhavi Devi & Shri Jason P.Boaz

…t Boards as against 25% allowed by the AO. On the ground Nos.1 and 2 relating to the deduction u/s 10A of the Act, we find that the issue is covered in favour of the assessee by the decision of the jurisdictional High Court in the case of CIT vs. Tata Elxsi (349 ITR 98) which has been followed by the CIT(A) in allowing relief to the assessee. The only argument raised by the learned Departmental Representative is that the judgment has not become final and the department has filed appeals before the Hon’ble Supreme Court. However, since the issue is covered in favour of the assessee by the decision of the jurisdic…

M/S Rambus Chip Technologies (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the revenue’s appeal is dismissed and assessee’s appeal is partly allowed

Bench: Smt. P. Madhavi Devi & Shri Jason P.Boaz

…t Boards as against 25% allowed by the AO. On the ground Nos.1 and 2 relating to the deduction u/s 10A of the Act, we find that the issue is covered in favour of the assessee by the decision of the jurisdictional High Court in the case of CIT vs. Tata Elxsi (349 ITR 98) which has been followed by the CIT(A) in allowing relief to the assessee. The only argument raised by the learned Departmental Representative is that the judgment has not become final and the department has filed appeals before the Hon’ble Supreme Court. However, since the issue is covered in favour of the assessee by the decision of the jurisdic…

M/S Austin Medical Solutions Pvt. Ltd., Bangalore vs. ITO, Bangalore

In the result, the assessee's appeal for Assessment Year 2008-09 is allowed

Bench: Smt. P. Madhavi Devi & Shri Jason P. Boazi.T. (T.P) A. No.542/Bang/2012 (Assessment Year : 2008-09) M/S. Austin Medical Solutions Pvt. Ltd., No.23, Sydney Park, 2Nd Floor, Prestige Takt Kasturba Road Cross, Bangalore-560 001 …. Appellant. Pan Aaeca 5725B Vs. The Income Tax Officer, Ward 11(1), Bangalore. ….. Respondent. Appellant By : Shri H.N. Khincha, C.A. Respondent By : Shri P. Dhivahar, Jcit (D.R) Date Of Hearing : 24.06.2015. Date Of Pronouncement : 17.07.2015. O R D E R Per Shri Jason P. Boaz, A.M. : This Appeal By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-Iv, Bangalore Dt.24.2.2012 For Assessment Year 2008-09. 2. The Facts Of The Case, Briefly, Are As Under :- 2.1 The Assessee, An Indian Company Engaged In The Business Of Export Of Software & Ites, Filed Its Return Of Income For Assessment Year 2008-09 On 18.12.2008 Declaring Nil Income. In The Return Of Income, The Income From Business Was Computed At Rs.63,02,287; Which Included An Amount Of Rs.28,61,352 By Way Of A Suo Moto Transfer Pricing Adjustment To The Arm’S Length

…of telecommunication expenses only from export turnover, the learned CIT (Appeals) relied upon the decision of the Hon'ble Karnataka 4 IT(T.P)A No.542/Bang/2012 Austin Medical Solutions Pvt Ltd High Court in the case of CIT V Tata Elxsi ltd. & Others (2011) 247 CTR 334 (Kar) to hold that the said expenses should be reduced both from export turnover as well as total turnover. 4. Aggrieved by the order of the CIT (Appeals) – IV, Bangalore dt.24.2.2012 for Assessment Year 2008-09, in denying its claim for deduction under Section 10A of the Act in respect of the suo moto T.P. Adjustment of Rs.28,61,352, the assesse…

Goldman Sachs Services Private Limited, Bangalore vs. DCIT, Bangalore

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

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

…t if the communication expenses are excluded from the export turnover then, the same should also be excluded from the total turnover in view of the judgment of jurisdictional High Court in the 21 IT(TP)A No.1685(B)/12 case of M/s Tata Elxsi Ltd. reported in 349 ITR 98 for the assessment year 2003-04. At the outset, we note that this issue is now covered in the case of M/s Tata Elxsi Ltd. cited supra, wherein the Hon’ble High Court while dealing with the issue has held in para-17 & 18 as under; “17. From the aforesaid judgments, what emerges is that, there should be uniformity in the ingredients of both the…

Deputy Commissioner of Income Tax, Bangalore vs. M/S Independent Technology Systems India Pvt Ltd, Bangalore

In the result, Revenue’s appeal for Assessment Year 2009-10 is dismissed

Bench: Shri Vijaypal Rao & Shri Jason P. Boazi.T.(T.P) A. No.1234/Bang/2014 (Assessment Year : 2009-10) Dy. Commissioner Of Income Vs. M/S. Independent Technology Tax, Systems India Pvt. Ltd., Circle 11(4), Bangalore. Divyasree Towers, 4Th Floor, No.55, Guruppanna Palya, Madivala Range, Bangalore-560 029 Pan Aabci 2954B Appellant Respondent.

…ing grounds :- “1. The order of the CIT (Appeals) is opposed to law and the facts and circumstances of the case. 2. The CIT (Appeals) erre4d in directing the Assessing Officer to follow the ratio laid down by the Hon'ble Court in the case ofTata Elxsi Limited 349 ITR 98 and exclude the telecommunication charges / freight charges incurred in foreign currency form the total turnover also while computing the deduction under Section 10A of the I.T. Act as the decision of the High Court is binding, without appreciating the fact that there is no provision in section 10A that such expenses should be reduced from the tot…

DCIT, Bangalore vs. M/S Mcafee Software India Pvt. Ltd., Bangalore

In the result, Revenue’s appeal for Assessment Year 2009-10 is dismissed

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazi.T.(T.P) A. No.1027/Bang/2014 (Assessment Year : 2009-10) Dy. Commissioner Of Income Tax, Vs. Mcafee Software (India) Pvt. Ltd., Circle 12(1), Bangalore. Embassy Golf Links Business Park, Pine Valley, 2Nd Floor, Off Indiranagar, Intermediate Ring Road, Koramangala, Bangalore-560 071 Pan Aabcn 3175H Appellant Respondent.

…s incurred in foreign currency from both export turnover as well as from total turnover for the purpose of computation of the deduction under Section 10A of the Act by relying on the decision of the Hon'ble Karnataka High Court in the case of Tata Elxsi Ltd. (349 ITR 98) (Kar). It is submitted that the learned CIT (Appeals) ought not to have followed the aforesaid decision of the Hon'ble Karnataka High Court since the same has not become final as the Department has challenged the said decision by way of SLP, which are pending before the Hon'ble Apex Court. The learned Departmental Representative was heard in supp…