CIT v. Tata Elxsi Ltd.

Deputy Commissioner of Income Tax Circle-7(1)(2), Bangalore vs. M/S Vmware Software India Private Limited, Bangalore

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

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 expeses 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 Vmware Software India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(2), Bangalore

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

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 expeses 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…

Vmware Software India Pvt Ltd, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-7(1)(2), Bengaluru

In the result, appeals of the Revenue are dismissed while the appeals of the assessee are partly allowed

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 expeses 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 Private Limited, Bangalore vs. Assistant 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 Chandra Poojariit(Tp)A No.308/Bang/2017 Assessment Year : 2012-13 M/S. Fidelity Business Services India Pvt. Ltd., Vs. The Assistant 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, Advocate Revenue By : Shri. B. K. Panda, Cit(Dr)(Itat), Bangalore Date Of Hearing : 15.12.2020 Date Of Pronouncement : 17.12.2020 O R D E R

…ecommunication expenses loss both from the export turnover and total turnover for the purpose of computation of deduction u/s. 10AA 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, insurance charges and foreign exchange loss 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 working total turnover and expo…

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 treated as allowed for statistical purposes

Bench: Shri George George K.And Shri B.R. Baskaranassessmentyear:2011-12

…dingly, he recomputed the deduction u/s 10A of the Act. The Ld. CIT(A) allowed the claim of the assessee by following the Infosys BPM Ltd., Bengaluru Page 3 of 16 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, the appeal of the assessee is treated as allowed for statistical purposes

Bench: Shri George George K.And Shri B.R. Baskaranassessmentyear:2011-12

…dingly, he recomputed the deduction u/s 10A of the Act. The Ld. CIT(A) allowed the claim of the assessee by following the Infosys BPM Ltd., Bengaluru Page 3 of 16 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…

DCIT, Bangalore vs. M/S Broadcom Communication Technologies Pvt. Ltd., Bangalore

In the result appeal filed by revenue stands dismissed

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.482/Bang/2016 Assessment Year : 2011-12

…Y has also not appreciated that there have been no projects in visual computing labs during the relevant previous year. Corporate issue:- 11. The DRP erred in directing the AO to follow the ratio laid down by the Honble court in the case of Tata Elxsi Limited 349 ITR 98 and exclude travel and conveyance expenses as well as expenditure on repairs and Page 4 of 23 IT(TP)A No.482/Bang/2016 CO No.7/Bang/2017 maintenance, from the total turnover also, while computing the deduction u/s 10 A of the l.T Act, Without appreciating the fact that there is no provision in section 1 OA that a such expenses should be reduced…

DCIT, Bangalore vs. M/S Ntt Data Global Delivery Services Pvt. Ltd., Bangalore

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

Bench: Shri. A.K. Garodia & Smt. Beena Pillaiit(Tp)A No.653/Bang/2016 Assessment Year : 2011 – 12

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. A.K. GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER IT(TP)A No.653/BANG/2016 Assessment Year : 2011 – 12 Asst. Commissioner of NTT Data Global Delivery Income-tax, Services Pvt. Ltd., Circle-5(1)(1), (In the case of M/s NTT Bengaluru. Vs. Data India Enterprises Application Services Pvt. Ltd., Formerly known as M/s Intelligroup Asia Pvt. Ltd., No.17 & 17/1, South End Road, Basavangudi, Bengaluru-560 004. PAN – AABCK 7777 J APPELLANT RESPONDENT IT(TP)A No.584/BANG/2016 Assessment Year : 2011-12 NTT Data Global Delivery As…

Asst.C.I.T., Bangalore vs. M/S Wipro Ltd., Bangalore

Bench: Shri B.R. Baskaran, Accountantmember & Shri Pavan Kumar Gadaleit(Tp)A No.99/Bang/2014 Assessmentyear:2009-10

…IT(TP)A Nos.99/Bang/2014, 398/Bang/2015, 222/Bang/2016, 492/Bang/2017, 2851/Bang/2-17, 3115/Bang/2018, 151/Bang/2014, 467/Bang/2015 & 609/Bang/2016 M/s. Wipro Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANTMEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER IT(TP)A No.99/Bang/2014 AssessmentYear:2009-10 M/s. Wipro Limited Doddakannelli Addl CIT Sarjapur Road Vs. Range-12 Bangalore-560 025. Bangalore PAN NO :AAACW 0387R APPELLANT RESPONDENT IT(TP)A No.398/Bang/2015 Assessment Year: 2010-11 M/s. Wipro Limited Deputy Commissioner of Doddakann…

DCIT, Bangalore vs. M/S Wipro Ltd., Bangalore

Bench: Shri B.R. Baskaran, Accountantmember & Shri Pavan Kumar Gadaleit(Tp)A No.99/Bang/2014 Assessmentyear:2009-10

…IT(TP)A Nos.99/Bang/2014, 398/Bang/2015, 222/Bang/2016, 492/Bang/2017, 2851/Bang/2-17, 3115/Bang/2018, 151/Bang/2014, 467/Bang/2015 & 609/Bang/2016 M/s. Wipro Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANTMEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER IT(TP)A No.99/Bang/2014 AssessmentYear:2009-10 M/s. Wipro Limited Doddakannelli Addl CIT Sarjapur Road Vs. Range-12 Bangalore-560 025. Bangalore PAN NO :AAACW 0387R APPELLANT RESPONDENT IT(TP)A No.398/Bang/2015 Assessment Year: 2010-11 M/s. Wipro Limited Deputy Commissioner of Doddakann…

Provimi Animal Nutrition Inida Private Limited, Bangalore vs. DCIT, Bangalore

In the result, assessee’s appeals are dismissed as withdrawn

Bench: Shri A.K Garodia & Smt. Beena Pillai

…A No.448/Bang/2017 etc from Export turn over as well as Total turnover for purpose of computation of deduction u/s.10A. 7. It has been submitted that, Ld.CIT(A) followed decision of Hon’ble Karnataka High Court in case of Tata Elxsi Ltd. vs. ACIT reported in 349 ITR 98, where it is held that, “where certain expenses are excluded from the export turnover, for purpose of calculating deductions admissible under the Act, such expenses should also be excluded from total turnover as the export turnover forms part of total turnover”. 8. Ld.CIT.DR placed reliance on observations of Ld.AO/TPO. 9. We have perused submissi…

ITO, Bangalore vs. M/S Sabre Travel Technologies Private Limited, Bangalore

In the result, appeal by the Assessee and revenue are partly allowed

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

…ges and foreign exchange loss 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, insurance charges and foreign exchange loss 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 working total turnover and expo…

Sabre Travels Technologies Pvt. Ltd., Bangalore vs. ITO, Bangalore

In the result, appeal by the Assessee and revenue are partly allowed

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

…ges and foreign exchange loss 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, insurance charges and foreign exchange loss 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 working total turnover and expo…

M/S Sabre Travels Technologies Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-6(1)(1), Bangalore

In the result, the appeal by the assessee is treated as allowed for statistical purposes

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

…ges and foreign exchange loss 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, insurance charges and IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 9 of 20 foreign exchange loss 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 al…

Sabre Travel Technologies Private Limited, Bangalore vs. ITO, Bangalore

In the result, the appeal by the assessee is treated as allowed for statistical purposes

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

…ges and foreign exchange loss 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, insurance charges and IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 9 of 20 foreign exchange loss 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 al…

Sabre Travel Technologies Private Limited, Bangalore vs. ITO, Bangalore

In the result, the appeal by the assessee is treated as allowed for statistical purposes

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

…ges and foreign exchange loss 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, insurance charges and IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 9 of 20 foreign exchange loss 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 al…

ITO, Bangalore vs. M/S Sabre Travel Technologies Private Limited, Bangalore

In the result, the appeal by the assessee is treated as allowed for statistical purposes

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

…ges and foreign exchange loss 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, insurance charges and IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 9 of 20 foreign exchange loss 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 al…

M/S Outsourcepartners International Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-5(1)(2), Bangalore

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

Bench: Shri N V Vasudevan & Shri G Manjunatha

…onal ground Nos. 2.4 & 2.5 alone. Grounds 2.1 to 2.3 were not pressed. 7. As far as additional grounds 2.4 & 2.5 are concerned, 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 telecommunication 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 IT(TP)A No.843/Bang/2018 Page 5 of 7 jurisdictional High Court is binding on us. Moreover, the order of the Hon’ble Karnata…