CIT v. Tata Elxsi Ltd.

DCIT, Bangalore vs. M/S Sandisk India Device Design Centre Private Limited, Bangalore

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

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

…he Assessee's alternate contention and held that the IT(TP)A Nos.543, 341/Bang/2015 Page 27 of 36 said expenses ought to be reduced from its export and total turnovers by following the judgment of the Hon'ble High Court of Karnataka in CIT v. Tata Elxsi Ltd. (349 ITR 98). Further, as for the unrealised export sales and forex loss, the DRP followed the decision of the jurisdictional High Court in the case of CIT v. Yokogawa India Ltd. (341 ITR 385) and held that the AO was not correct in excluding the said amounts from the Assessee's gross total income and then calculating the deduction allowable to it under Secti…

Asst.C.I.T., Bangalore vs. M/S Sap Lab India Pvt. Ltd., Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No. & Appellant Respondent Assessment Year 623/Bang/2016 The Assistant Commissioner Of M/S. Sap Lab Pvt. Ltd., 2011-12 Income Tax, 138, Export Promotion Circle - 6(1)(1), Industrial Park, Whitefield, Bengaluru. Bengaluru – 560 066. Pan : Aafcs 3649 P 566/Bang/2016 M/S. Sap Lab Pvt. Ltd., The Assistant Commissioner Of 2011-12 Bengaluru – 560 066. Income Tax, Pan : Aafcs 3649 P Circle - 6(1)(1), Bengaluru.

…from total turnover and export turnover while computing deduction u/s.10A of the Act. We have considered the rival submissions. 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 communication charges and expenses incurred in foreign exchange should be excluded both from export turnover and total turnover. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictional High Court is binding on us. Moreover, the order of the Hon’ble Karnata…

M/S Sap Labs India Private Limited, Bangalore vs. Asst.C.I.T., Bangalore

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

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No. & Appellant Respondent Assessment Year 623/Bang/2016 The Assistant Commissioner Of M/S. Sap Lab Pvt. Ltd., 2011-12 Income Tax, 138, Export Promotion Circle - 6(1)(1), Industrial Park, Whitefield, Bengaluru. Bengaluru – 560 066. Pan : Aafcs 3649 P 566/Bang/2016 M/S. Sap Lab Pvt. Ltd., The Assistant Commissioner Of 2011-12 Bengaluru – 560 066. Income Tax, Pan : Aafcs 3649 P Circle - 6(1)(1), Bengaluru.

…from total turnover and export turnover while computing deduction u/s.10A of the Act. We have considered the rival submissions. 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 communication charges and expenses incurred in foreign exchange should be excluded both from export turnover and total turnover. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictional High Court is binding on us. Moreover, the order of the Hon’ble Karnata…

M/S Infosys Bpm Limited, Bangalore vs. Joint Commissioner of Income Tax Special Range-3, Bangalore

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

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year:2009-10

…equirement of section 10A & 10AA is to reduce from Export turnover only. Accordingly, the AO re-computed the deductions allowable u/s 10A & 10AA. 7.1 The Ld CIT(A) held that the decision rendered by Hon'ble Karnataka High Court in the case of Tata Elxsi Ltd (349 ITR 98) is applicable to the facts of the present issue. Accordingly, he observed that the expenditure incurred in foreign currency and telecommunication charges have to be reduced from both export turnover and total turnover. Accordingly, he directed the AO to follow the decision of Hon'ble jurisdictional High Court. Accordingly, the Ld CIT(A) did not a…

Eit Services India Private Limited (Formerly Known As Hewlett Packard Global Soft Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

In the result appeal filed by assessee stands allowed

Bench: Shri Chandra Poojari & Smt Beena Pillai

…High Court 3. Before the Hon’ble High Court, it was argued that the Tribunal erred in not adjudicating the Ground no. 9 independently and in holding that the same is covered by a decision of Hon’ble High Court in the case of CIT Vs. Tata Elxsi as reported in 349 ITR 98. Page 3 of 6 IT(TP)A No. 1455/Bang/2010 Hence the Hon’ble High Court remanded the issue back to this Tribunal to adjudicate Ground no. 9 independently. After hearing both the parties and perusing the material on record. The Ld.AR placed reliance of following decisions:  CIT v Motor Industries Co Ltd [2015] 55 taxmann.com 377 (Karnataka)  CIT v M…

M/S. Arctern Consulting Pvt. Ltd, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-1(1)(2), Bengaluru

Bench: Shri B.R. Baskaran & Smt Beena Pillaiit(Tp)A. No. 2747/Bang/2017 Assessment Year: 2013-14 M/S. Arctern Consulting Pvt. Ltd., Embassy Tech Village, The Deputy Tower 2B, Commissioner Of Hibiscus 5Th Floor, Income Tax, Outer Ring Road, Circle – 1(1)(2), Vs. Deverabeesanahalli, Bangalore. Bangalore – 560103. Pan: Aaeca9113F (Appellant) (Respondent) Smt. Tanmayee Rajkumar, Appellant By : Advocate Respondent By : Shri Gopinath C.H., Cit (Dr) Date Of Hearing : 23.09.2021 Date Of Pronouncement : 03.11.2021 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 17/10/2017 Passed Under Section 143(3) R.W.S. 144C(13) Of The Act By The Ld.Dcit, Circle1(1)(2), Bangalore On Following Grounds Of Appeal: “1. That The Order Of The Respondent / Assessing Officer ('Ao' For Short) Pursuant To The Directions Of The Dispute Resolution Panel (The Drp' For Short). To The Extent Prejudicial To The Appellant. Is Bad In Law & Liable To Be Set Aside. 2. Adjustment To The Prices Charged By The Appellant For International Transactions-

…and in any event, the AO erred in not making a corresponding reduction of the aforesaid travel expenses and telecommunication charges from the total turnover as well in accordance with the Hon'ble High Court of Karnataka's decision in CIT v. Tata Elxsi Ltd. (349 ITR 98). The DRP further erred in upholding the same. 10. That, furthermore, the AO erred in setting-off brought forward business losses of Rs.1.51,97,641/- relating to earlier assessment years before allowing the deduction under Section 10AA of the Act and thereby failed to appreciate that the said Page 6 of 36 IT(TP)A No. 2747/Bang/2017 action is dire…

M/S Infosys Bpm Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

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

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year: 2008-09

…equirement of section 10A & 10AA is to reduce from Export turnover only. Accordingly, the AO re-computed the deductions allowable u/s 10A & 10AA. 7.1 The Ld CIT(A) held that the decision rendered by Hon'ble Karnataka High Court in the case of Tata Elxsi Ltd (349 ITR 98) is applicable to the facts of the present issue. Accordingly, he observed that the expenditure incurred in foreign currency and telecommunication charges have to be reduced from both export turnover and total turnover. Accordingly, he directed the AO to follow the decision of Hon'ble jurisdictional High Court. Accordingly, the Ld CIT(A) did not a…

Abb Ltd., Bangalore vs. Addl. CIT, Bangalore

In the result, appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…Tribunal for assessment year 2006-07 by order dated 31/10/2013 in ITA No. 1353/B/2011 as under: “7. We have heard the rival submissions. As far as the alternative claim is concerned, we find that Hon’ble High Court of Karnataka in case of Tata LXE Ltd. (2012) 349 ITR 98 has held that while computing deduction under section 10 A of the income tax act, 1961 (the act), expenditure incurred by assessee, if excluded from the export turnover (ET) should also be excluded from the total turnover (TP). It has been held that, • the TT would have 2 components-ET and domestic turnover. Therefore if the ET in the numerator is…

DCIT, Bangalore vs. M/S Lam Research (India) Pvt. Ltd., Bangalore

In the result appeal by the Assessee is partly allowed and the appeal by the Revenue is dismissed

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

…hnical servies outside India, both from the export turnover and total turnover for the purpose of computation of deduction u/s. 10A of the Act. It is not in dispute before us that the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2012] 349 ITR 98 (Karn) has held that charges/expenses relating to telecommunication, and expenses in connection with rendering technical services outside India, should be excluded both from export turnover and total turnover while computing deduction u/s.10A of the Act i.e., whatever is removed from the numerator should also be excluded from the denominator while…

Lam Research (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result appeal by the Assessee is partly allowed and the appeal by the Revenue is dismissed

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

…hnical servies outside India, both from the export turnover and total turnover for the purpose of computation of deduction u/s. 10A of the Act. It is not in dispute before us that the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2012] 349 ITR 98 (Karn) has held that charges/expenses relating to telecommunication, and expenses in connection with rendering technical services outside India, should be excluded both from export turnover and total turnover while computing deduction u/s.10A of the Act i.e., whatever is removed from the numerator should also be excluded from the denominator while…

M/S Fidelity Business Services India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result appeal by the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.2848/Bang/2017 Assessment Year : 2013-14 M/S. Fidelity Business Services India Pvt. Ltd., Vs. The Deputy Commissioner Of Income Tax, Pinehurst, Embassy Golf Links Business Park, Circle – 3(1)(1), Off Intermediate Ring Road, Bangalore. Bangalore – 560 071. Pan : Aaacf 6175 E Assessee By : Shri. G. C. Srivastava, Ca Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 07.09.2021 Date Of Pronouncement : 08.09.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Final Order Of Assessment Dated 25.10.2017 Passed By The Dcit, Circle – 3(1)(1), Bengaluru, Under Section 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’), For Assessment Year 2013-14. 2. Ground No.1 Raised By The Assessee Is General In Nature & Requires No Specific Adjudication. Ground Nos. 2 To 18 Raised By The Assessee Are In Relation To The Addition Made Consequent To Determination Of Arm’S Length Price (Alp) In Respect Of International Transaction Of Rendering Of Software Development Services By The Assessee To Its Associated Enterprise (Ae) In Terms Of Section 92 Of The Act. At The Time Of Hearing, Learned Counsel For The Assessee Made A Submission That The Assessee’S Ae Based In Usa Had Applied For Resolution Of It(Tp)A No.2848/Bang/2017 Page 2 Of 3 The Dispute Under The Mutual Agreement Procedure (Map) With The Competent Authorities Of Usa & Govt. Of India. Consequent To The Aforesaid Request, The Dispute Has Been Resolved Between The Assessee & The Department. A Copy Of The Letter Of The Cbdt Dated 16.06.2021 Is Also Filed Before Us. In The Light Of The Resolution Of Disputes Under Map, The Learned Counsel For The Assessee Prayed That Grounds 2 To 18 May Be Dismissed As Not Pressed. Accordingly, These Grounds Are Dismissed As Not Pressed.

…tion and insurance charges incurred by the assessee has to be excluded both from the export turnover and the total turnover while computing deduction under section 10AA of the Act. On this issue, the Hon’ble Karnataka High Court in the case of Tata Elxsi Ltd, 349 ITR 98 has already held that whatever is to be excluded from the export turnover has to be excluded from the total turnover also. This view has since been confirmed by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. in Civil Appeal No.8489-98490 of 2013 & Ors. dated 24.04.2018. In view of the above, we are IT(TP)A No.2848/Bang/2017…

Assistant Commissioner of Income Tax, Bangalore vs. Nvidia Graphics Pvt Ltd, Bangalore

In the result appeal filed by revenue stands dismissed and appeal filed by assessee stands allowed

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiassessment Year : 2011 – 12

…diture incurred on travel and communication both from the export turnover and total turnover for the purpose of computation of deduction u/s 10A of the IT Act by following the decision of the Hon’ble Karnataka High Court in the case of CIT vs.Tata Elxsi Ltd. (349 ITR 98) Page 11 of 23 ITA No.736 & IT(TP)A No.801/Bang/2017 4.5. The Ld.CIT(A) deleated the addition made on account of re- allocation of advertisement expenses by considering the order of the coordinate bench of this Tribunal in favour of the Assessee in its own case for the AY 2009-10. 4.6. Comparables that were finally retained post Ld.CIT(A) order…

M/S Sasken Technologies Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-6(1)(1), Bangalore

Accordingly this ground raised by assessee stands allowed

Bench: Shri Br Baskaran & Smt. Beena Pillai

…lit method and determined 25% of the payment to words royalty. 2.10 The DRP upheld the disallowance made by the Ld.AO under section 10AA of the Act, by observing that the view taken by Hon’ble Karnataka High Court in CIT vs Tata Elxsi Ltd., reported in (2012) 349 ITR 98 has been appealed before Hon’ble Supreme Court and that the issue had to be kept alive. 2.11 The disallowance made under section 14A was also upheld by the DRP. 2.12 Before DRP assessee had also raised one ground in respect of credit in terms of taxes paid outside India which was not considered while computing MAT Credit, as per provisions of sect…

DCIT, Bangalore vs. M/S Cisco Systems Bv - India Branch, Bangalore

In the result appeal filed by revenue stands partly allowed and appeal filed by assessee stands allowed

Bench: Shri Br Baskaran & Smt. Beena Pillaiit(It)A No.309/Bang/2016 Assessment Year : 2011-12

…osed to law and facts of the case. 2. The learned DRP was not justified in directing the A.O. to follow the decision of the Hon'ble Court in the case of CIT vs Tata Elxsi and others in the consolidated order dated 30.08.2011 in ITA No. 70/2009 & others (2012) 247 CTR 334 while computing the deduction u/s 1OA. 3. The learned DRP erred in allowing the relief, relying on the decision of the Hon'ble High Court in the case of CIT vs Tata Elxsi and others in the consolidated order dated 30.08.2011 in ITA No. 70/2009 & others (2012) 247 CTR 334, while the same has not been accepted by the department and a SLP has been f…

M/S Infosys Bpm Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, both the appeals of the assessee are treated as allowed and both the appeals of the revenue are treated as partly allowed

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran

…m Total turnover. Accordingly, he recomputed the deduction u/s 10AA of the Act. The Ld. CIT(A) allowed the claim of the assessee in both the years by following the decision rendered by Hon'ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. (2012) 349 ITR 98. The revenue has challenged the said decision of CIT(A) by submitting that the revenue has filed a SLP in the Hon'ble Supreme Court challenging the above said decision of the Hon'ble Karnataka High Court. 6. We heard the parties on this issue. The Ld. A.R. submitted that the decision rendered by Hon'ble Karnataka High Court in the case of Tata El…

M/S Infosys Bpm Lmited, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, both the appeals of the assessee are treated as allowed and both the appeals of the revenue are treated as partly allowed

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran

…m Total turnover. Accordingly, he recomputed the deduction u/s 10AA of the Act. The Ld. CIT(A) allowed the claim of the assessee in both the years by following the decision rendered by Hon'ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. (2012) 349 ITR 98. The revenue has challenged the said decision of CIT(A) by submitting that the revenue has filed a SLP in the Hon'ble Supreme Court challenging the above said decision of the Hon'ble Karnataka High Court. 6. We heard the parties on this issue. The Ld. A.R. submitted that the decision rendered by Hon'ble Karnataka High Court in the case of Tata El…

Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore vs. M/S Infosys Bpm Ltd, Bangalore

In the result, both the appeals of the assessee are treated as allowed and both the appeals of the revenue are treated as partly allowed

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran

…m Total turnover. Accordingly, he recomputed the deduction u/s 10AA of the Act. The Ld. CIT(A) allowed the claim of the assessee in both the years by following the decision rendered by Hon'ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. (2012) 349 ITR 98. The revenue has challenged the said decision of CIT(A) by submitting that the revenue has filed a SLP in the Hon'ble Supreme Court challenging the above said decision of the Hon'ble Karnataka High Court. 6. We heard the parties on this issue. The Ld. A.R. submitted that the decision rendered by Hon'ble Karnataka High Court in the case of Tata El…

Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore vs. M/S Infosys Bpm Ltd, Bangalore

In the result, both the appeals of the assessee are treated as allowed and both the appeals of the revenue are treated as partly allowed

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaran

…m Total turnover. Accordingly, he recomputed the deduction u/s 10AA of the Act. The Ld. CIT(A) allowed the claim of the assessee in both the years by following the decision rendered by Hon'ble Karnataka High Court in the case of CIT Vs. Tata Elxsi Ltd. (2012) 349 ITR 98. The revenue has challenged the said decision of CIT(A) by submitting that the revenue has filed a SLP in the Hon'ble Supreme Court challenging the above said decision of the Hon'ble Karnataka High Court. 6. We heard the parties on this issue. The Ld. A.R. submitted that the decision rendered by Hon'ble Karnataka High Court in the case of Tata El…