CIT v. Tata Elxsi Ltd.

Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore vs. M/S Huawei Technologies India Pvt Ltd, Bangalore

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

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

…s no provision under Sec. 10A for exclusion of such expenses from Total Turnover.” 19. 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 whatever is excluded from export turnover should also be excluded from total turnover while IT(TP)A No.1940/Bang/2017 ITA Nos.2140, 2051/Bang/2017 Page 16 of 29 computing deduction u/s.10A of the Act. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictiona…

Huawei Technologies India Pvt Ltd, Bangalore vs. Income Tax Officer Ward-11(2), Bangalore

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

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

…s no provision under Sec. 10A for exclusion of such expenses from Total Turnover.” 19. 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 whatever is excluded from export turnover should also be excluded from total turnover while IT(TP)A No.1940/Bang/2017 ITA Nos.2140, 2051/Bang/2017 Page 16 of 29 computing deduction u/s.10A of the Act. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictiona…

Huawei Technologies India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore

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

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

…s no provision under Sec. 10A for exclusion of such expenses from Total Turnover.” 19. 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 whatever is excluded from export turnover should also be excluded from total turnover while IT(TP)A No.1940/Bang/2017 ITA Nos.2140, 2051/Bang/2017 Page 16 of 29 computing deduction u/s.10A of the Act. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictiona…

M/S Altisource Business Solutions Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result appeal filed by assessee stands allowed partly as indicated hereinabove

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No.208/Bang/2016 Assessment Year : 2011-12

…on strict comparability under TNMM defeats the very purpose of the law relating to determination of ALP under I.T.Act. Corporate Issue: 18. 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 telecommunication expenses and travelling expenses incurred in foreign currency 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 expenses should be reduced from the total turnover also, as clause (iv) of the explanation…

Radisys India Private Limited, Bangalore vs. DCIT, Bangalore

In the result appeal filed by assessee stands partly allowed as indicated here and appeal filed by revenue stands dismissed

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No.94/Bang/2016 Assessment Year : 2011-12

…order the Ld.AO disallowed a sum of Rs.24,58,203/- being deduction claimed under section 10A of the Act. The Ld.AO made the disallowance on the ground that, the appeal against decision of Hon’ble Karnataka High Court in case of Tata Elxsi, reported in (2011) 247 CTR 334, has been filed by revenue before Hon’ble Supreme Court which was pending during relevant period. 11. On receipt of the draft assessment order, the assessee preferred objections before DRP. The DRP accepted the submissions of assessee and directed Ld.AO to exclude following: Acropetal Technologies Ltd. e-Zest Solutions E Infotech Ltd. ICRA Techno…

Asst.C.I.T., Bangalore vs. M/S Mphasis Limited, Bangalore

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

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

…ssee raised objections before the DRP. 17. DRP directed the Ld. AO to recompute export turnover for purposes of computing deduction under section 10A in accordance with the decision of Hon’ble Karnataka High Court in case of CIT vs Tata Elxi Ltd., reported in 349 ITR 98. However, exclusion of the on-site development charges and communication charges from export turnover for computing deductions under section 10 A/10 AA/10 B was not decided by the DRP. 18. In terms of the depreciation claimed and the additional claim raised by assessee, the DRP did not consider the objections as these did not form part of the orig…

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

In the result, the Revenue’s appeal as well as Assessee’s appeal are partly allowed for statistical purposes

…xport turnover for the purpose of computing deduction u/s 10A of the I.T.Act. 4.1 After hearing both the parties, we are of the opinion that this issue came up for consideration before the Hon’ble Karnataka High Court in the case of CIT v. Tata Elxsi Limited 349 ITR 98, wherein held that for the purpose of computing exemption u/s 10A of the Act, when export turnover in the numerator is to be arrived after excluding telecommunication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. 10 IT(TP)A No.505-508 & CO 135/Bang/2015 M/s.Cisco S…

Cisco Systems (India) Private Limited, Bangalore vs. Asst.C.I.T., Bangalore

In the result, the Revenue’s appeal as well as Assessee’s appeal are partly allowed for statistical purposes

…xport turnover for the purpose of computing deduction u/s 10A of the I.T.Act. 4.1 After hearing both the parties, we are of the opinion that this issue came up for consideration before the Hon’ble Karnataka High Court in the case of CIT v. Tata Elxsi Limited 349 ITR 98, wherein held that for the purpose of computing exemption u/s 10A of the Act, when export turnover in the numerator is to be arrived after excluding telecommunication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. 10 IT(TP)A No.505-508 & CO 135/Bang/2015 M/s.Cisco S…

DCIT, Bangalore vs. M/S Ntt Date Global Delivery Services, Bangalore

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

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am It(Tp)A No.508/Bang/2016 : Asst.Year 2011-2012 The Dy.Commissioner Of Income- M/S.Ntt Data Global Delivery Tax, Circle 5(1)(1) Services (Formerly Known As V. Bangalore. Keane India Limited) No.18 & 81/1, South End Road, Basavangudi Bangalore – 560 004. Pan : Aabck7777J. (Appellant) (Respondent) Appellant By : Ms.Neera Malhotra, Cit-Dr Respondent By : Sri.Chavali Narayan, Ca Date Of Date Of Hearing : 01.04.2021 Pronouncement : 12.04.2021 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Revenue Is Directed Against The Final Assessment Order Dated 28.01.2016 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2011-2012. 2. The Grounds Raised Read As Follow:

…rom the export turnover as well as from the total turnover while computing deduction u/s 10A of the I.T.Act. For the above directions of the DRP, they relied on the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd. (2012) 349 ITR 98. 4.3 Aggrieved, the department has filed this appeal before the Tribunal. 4.4 We have heard rival submissions and perused the material on record. The issue in question is squarely covered by the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd. (supra), wherein the Hon’ble High Court upheld the principle of p…

DCIT, Bangalore vs. M/S Core Objects India Pvt. Ltd., Bangalore

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

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No.517/Bang/2015 Assessment Year : 2010-11

…r section 40(a)(ia) of the Act has to be ignored. • As regards computation of 10A deduction, the DRP directed the Ld.AO to compute in accordance with the decision of Hon’ble Karnataka High Court in case of CIT vs Tata Elxsi Ltd., and others reported in (2011) 247 CTR 334; • the DRP also directed the Ld.AO to recompute the loss arising out of Noida unit against the business income after excluding the transfer pricing adjustment located by assessee in the computation. • DRP also directed to grant TDS credit after verifying the claim of assessee. 20. The Ld.AO upon receipt of DRP directions called upon assessee to f…

M/S Verifone India Technology Pvt Ltd, Bangalore vs. Income Tax Officer Ward-12(2), Bangalore

In the result appeal filed by revenue stands dismissed

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2010-11

…held the other comparables. 12. In respect of deduction claimed under section 10 B by assessee, the Ld.CIT (A) directed the Ld.AO to consider the claim in accordance with the ruling of Hon’ble Karnataka High Court in case of Tata Elxsi Ltd. reported in (2012) 349 ITR 98. As regards the software expenses disallowed amounting to Rs.26,90,426/-it was submitted that TDS was deducted by assessee which the Ld.CIT(A) directed Ld.AO to verify the claim and allow the payment, if TDS is found to be deposited. 13. Aggrieved by the order of the Ld.CIT(A), assessee as well as revenue are in appeal before us. 14. At the outset…

Income Tax Officer, Bangalore vs. M/S. Ariba Technologies India (P) Ltd, Bangalore

In the result appeal filed by revenue stands dismissed

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2010-11

…v) of the Explanation 2 to Section 10A provides that such expenses are to be reduced only from the 'export turnover'. (ii) The Ld. CIT(A) erred in not appreciating the fact that the jurisdictional High Court's decision in the case of Tata Elxsi Limited (2012) 349 ITR 98 (Kar) has not been accepted by the department and an appeal has been filed before the Hon'ble Supreme Court, hence not reached finality. ALP Adjustment: (3) SWD Segment: (a)M/s Infosys Technologies Limited: (I) In the facts and circumstances of the case, the Ld.CIT(A) erred in holding that M/s Infosys Technologies Ltd., cannot be taken as comparab…

Altisource Business Solutions Private Limited, Bangalore vs. DCIT, Bangalore

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…53. Ground Nos. 9 & 10 by the revenue are as follows:- IT(TP)A Nos.178 & 335/Bang/2015 Page 23 of 23 54. This issue is decided in favour of assessee in view of the DRP following the judgment of the Hon’ble High Court of Karnataka in CIT v. Tata Elxsi Ltd., 349 ITR 98 (Karn) which is confirmed by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. in Civil Appeal No.8489- 8490 of 2013 & Ors. dated 24.04.2018. 55. In the result, the revenue’s appeal is partly allowed. 56. Thus, both the appeals by the revenue and assessee are partly allowed. Pronounced in the open court on this 11th day of Ma…

DCIT, Bangalore vs. M/S Altisource Business Solutions Pvt. Ltd., Bangalore

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…53. Ground Nos. 9 & 10 by the revenue are as follows:- IT(TP)A Nos.178 & 335/Bang/2015 Page 23 of 23 54. This issue is decided in favour of assessee in view of the DRP following the judgment of the Hon’ble High Court of Karnataka in CIT v. Tata Elxsi Ltd., 349 ITR 98 (Karn) which is confirmed by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. in Civil Appeal No.8489- 8490 of 2013 & Ors. dated 24.04.2018. 55. In the result, the revenue’s appeal is partly allowed. 56. Thus, both the appeals by the revenue and assessee are partly allowed. Pronounced in the open court on this 11th day of Ma…

Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore vs. M/S Gxs India Technology Pvt Ltd, Bangalore

In the result, the appeal by the revenue is dismissed, while the appeal by the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2007-08

…s no provision under Sec. 10A for exclusion of such expenses from Total Turnover.” 21. 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), ITA No. 2029 & 2142/Bang/2017 Page 20 of 20 we are of the view that communication charges 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 Kar…

M/S Gxs India Technology Centre Pvt Ltd, Bangalore vs. Income Tax Officer Ward-11(2), Bangalore

In the result, the appeal by the revenue is dismissed, while the appeal by the assessee is partly allowed

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2007-08

…s no provision under Sec. 10A for exclusion of such expenses from Total Turnover.” 21. 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), ITA No. 2029 & 2142/Bang/2017 Page 20 of 20 we are of the view that communication charges 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 Kar…

Deputy Commissioner of Income Tax, Circle-1(1)(1), Bangalore vs. M/S. Abb Global Industries and Services Pvt Ltd, Bangalore

In the result, the appeal by the assessee is partly allowed, while the appeal by the revenue is dismissed

Bench: Shri N V Vasudevan & Shri Chandra Poojariassessment Year: 2010-11

…ecific adjudication. 21. Ground No.2 is with regard to 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 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 Karnataka High Court has been upheld by the Hon’b…

Abb Global Industries and Services Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Circle-11(1), Bangalore

In the result, the appeal by the assessee is partly allowed, while the appeal by the revenue is dismissed

Bench: Shri N V Vasudevan & Shri Chandra Poojariassessment Year: 2010-11

…ecific adjudication. 21. Ground No.2 is with regard to 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 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 Karnataka High Court has been upheld by the Hon’b…