CIT v. Tata Elxsi Ltd.

Tavant Technologies India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Circle-7(1)(1), Bangalore

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

Bench: Shri N V Vasudevan & Shri G Manjunatha

…g Telecommunication, Insurance and Expenditure incurred in Foreign currency from export turnover only and not from Total Turnover, assessee has placed its reliance on the Hon'ble Karnataka High Court decision in the case of Tata Elxsi Ltd & others reported in 349 ITR 98 and the Order passed by the IT(TP)A No.1700/Bang/2017 Page 13 of 14 Hon'ble Income Tax Appellate Tribunal in assesee's own case for the A.Y 2004-05, A.Y 2005-06 & A.Y 2006-07, for reducing the same from the Total turnover also. Since the Hon'ble Karnataka High Court decision is directly applicable to the assessee, the demand raised due to such 10…

Mrs. Suvina Krupal, Somwarpet vs. ITO, Madikeri

In the result appeal stands allowed as indicated hereinabove

Bench: Shri. B. R. Baskaran & Smt. Beena Pillai

…issued are beyond the mandate of the provisions of Sec.25(1)(a) of the Act which does not empower the CIT(A)l to set aside the issue. 6. The CIT(A) 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 the data link charges of Rs. 21,27,178/- from the total turnover also while computing the deduction u/s. 10A of the I.T. Act as the decision of the Hon'ble High Court is binding, 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 t…

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

In the result, the ground No

Bench: Shri B. R. Baskaran & Shri Pavan Kumar Gadaleit(Tp)A No.647/Bang/2017 Assessmentyear: 2012 – 13

…ould also be removed from total turnover in the formula prescribed for computing deduction u/s 10AA of the Act. The contention of the assessee is supported by the decision rendered by jurisdiction of Hon’ble Karnataka High Court in the case of Tata Elixi Ltd. 349 ITR 98, which was affirmed by Hon’ble Supreme Court in the case of HCL Technologies Ltd. 404 ITR 719. Accordingly, we find merit in the contentions of the assessee. Accordingly, we direct the A.O. to exclude the expenditure, which were removed from IT(TP)A No.647/Bang/2017 M/s. Sandvine Technologies (India) Pvt. Ltd., Bangalore Page 3 of 3 Export turnov…

Aspect Technology Center (India) Private Limited, Bangalore vs. ITO, Bangalore

In the result appeal by the Assessee and the appeal by the Revenue are partly allowed, to the extent indicated in this order

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

…also, as clause (iv) of the explanation to section 10A provides that such expenses are to be reduced only from the export turnover. 17. The DRP erred in not appreciating the fact that the jurisdictional High Court's decision in the case of Tata Elxsi Limited 349 ITR 98 has not been accepted by the department and an appeal has been filed before the Hon'ble Supreme Court. 18. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the DRP be reversed and that of the Assessing Officer be restored. 19. The appellate craves leave to add, to alter, to amend or d…

ITO, Bangalore vs. M/S Aspect Technology Centre India Pvt. Ltd., Bangalore

In the result appeal by the Assessee and the appeal by the Revenue are partly allowed, to the extent indicated in this order

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

…also, as clause (iv) of the explanation to section 10A provides that such expenses are to be reduced only from the export turnover. 17. The DRP erred in not appreciating the fact that the jurisdictional High Court's decision in the case of Tata Elxsi Limited 349 ITR 98 has not been accepted by the department and an appeal has been filed before the Hon'ble Supreme Court. 18. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the DRP be reversed and that of the Assessing Officer be restored. 19. The appellate craves leave to add, to alter, to amend or d…

Akamai Technologies India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal by the Revenue is dismissed, while the appeal by the assessee is treated as allowed for statistical purpose while the Cross

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

…rables selected by the TPO and that the accurate details of debtors and creditors of the assessee and the comparables were not available. 9. 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 travel expenses incurred in Foreign currency from the export 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 to…

DCIT, Bangalore vs. M/S Akamai Technologies India Pvt. Ltd., Bangalore

In the result, appeal by the Revenue is dismissed, while the appeal by the assessee is treated as allowed for statistical purpose while the Cross

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

…rables selected by the TPO and that the accurate details of debtors and creditors of the assessee and the comparables were not available. 9. 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 travel expenses incurred in Foreign currency from the export 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 to…

M/S Tecnotree Convergence Ltd., Gurgaon vs. ACIT, Haridwar

In the result, assessee’s appeal for Assessment Year 2009-10 is also partly allowed for statistical purposes

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadale

…of the Revenue supported the Assessment Order whereas it is submitted by learned AR of the assessee that this issue is now covered in favour of the assessee by the judgment of Hon’ble Karnataka High Court rendered in the case of Tata Elxsi Ltd. as reported in 349 ITR 98. 3. We have considered the rival submissions. We find that as per the grounds raised by the Revenue as reproduced above, this is the grievance of the Revenue that learned CIT(A) has erred in directing the AO to exclude the expenses incurred in foreign currency outside India from the total turnover of the assessee for computing deduction allowable…

Marlabs Software Pvt. Ltd., Bangalore vs. Asst.C.I.T., Bangalore

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

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.544/Bang/2015 Assessment Year : 2010-11

…ly accepted exclusion of certain comparables for not fulfilling turnover criteria. DRP directed Ld.AO/TPO to recompute relief under section 10A in compliance with ratio laid down by Horn’ble Karnataka High Court in case of CIT vs M/s.Tata Elxi Ltd reported in 349 ITR 98. As regards the working capital adjustment, objection raised by assessee was rejected whereas DRP suo moto directed Ld.AO/TPO to grant risk adjustment at 1% to the average margin of comparables. 9. On receipt of directions from DRP, Ld.AO passed final assessment order by reducing transfer pricing adjustment to Page 7 of 23 IT(TP)A Nos.430, 544/Ban…

Deputy Commissioner of Income Tax Circle-7(1)(2), Bangalore vs. M/S Yahoo Software Development Pvt Ltd, Bangalore

Bench: Shri N.V.Vasudevan, Vice- & Shri Chandra Poojari

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “B” , BANGALORE Before Shri N.V.Vasudevan, Vice-President & Shri Chandra Poojari, Accountant Member ITA No.2510/Bang/2017: Asst.Year 2009-2010 Dy. Commissioner of Income-tax, M/s. Yahoo Software Circle 7(1)(2) Development Private Limited Vs. Bangalore. Torrey Pines, Embassy Gold Links, Business Park, Off Indiranagar Koramangala Intermediate Ring Road Bangalore – 560 071. PAN: AAACY1876D. (Appellant) (Respondent) IT(TP)A No.133/Bang/2018: Asst.Year 2009-2010 M/s. Yahoo Software Development Dy. Commissioner of Income- Private Limited tax, Circle 7(1)(2) Vs. B…

Income-Tax Officer, Haveri vs. M/S.Mahalaxmi Urban Co-Op Society Ltd., Haveri

Bench: Shri N.V.Vasudevan, Vice- & Shri Chandra Poojari

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “B” , BANGALORE Before Shri N.V.Vasudevan, Vice-President & Shri Chandra Poojari, Accountant Member ITA No.2510/Bang/2017: Asst.Year 2009-2010 Dy. Commissioner of Income-tax, M/s. Yahoo Software Circle 7(1)(2) Development Private Limited Vs. Bangalore. Torrey Pines, Embassy Gold Links, Business Park, Off Indiranagar Koramangala Intermediate Ring Road Bangalore – 560 071. PAN: AAACY1876D. (Appellant) (Respondent) IT(TP)A No.133/Bang/2018: Asst.Year 2009-2010 M/s. Yahoo Software Development Dy. Commissioner of Income- Private Limited tax, Circle 7(1)(2) Vs. B…

DCIT vs. M/S Logica Pvt. Ltd

In the result appeal filed by revenue stands partly allowed

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.612/Bang/2013 Assessment Year : 2005 – 06

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER IT(TP)A No.612/Bang/2013 Assessment Year : 2005 – 06 The Dy. Commissioner of M/s CGI Information Income Tax, Systems and Management Circle-2(1)(1), Consultants Pvt. Ltd., Bengaluru. Vs. (Successor in the interest of M/s Logica Pvt. Ltd.,), E City, Tower-2, 95/1 & 95/2, Electronic City Phase 1 (West), Bengaluru-560 100. PAN – AAACL 3330M APPELLANT RESPONDENT Appellant by : Shri Muzaffar Hussain, CIT (DR) Respondent by : Ms. Tanmayee Rajkumar, Advocate Date of Hearing…

ITO, Bangalore vs. M/S Evolving Systems Networks India Pvt. Ltd., Bangalore

In the result appeal filed by assessee stands allowed and revenue’s appeal stands partly allowed as indicated above

Bench: Smt. Beena Pillai & Shri. O.P. Meena

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI. O.P. MEENA, ACCOUNTANT MEMBER IT(TP)A 419/Bang/2016 Asst. Year : 2011 – 12 Income – Tax Officer, M/s. Evolving Systems Ward – 2 (1) (4), Networks India Pvt. Ltd., Room No. 207, 2nd Floor, ‘Gurudas Heritage’, BMTC Building, 3rd Floor, 59/2, Koramangala, Vs. 100 Ft. Ring Road, Bangalore – 560 095. Banashankari II Stage, Bengaluru – 560 070. PAN NO : AABCE2761N APPELLANT RESPONDENT & IT(TP)A 461/Bang/2016 Asst. Year : 2011 – 12 M/s. Evolving Systems Income – Tax Officer, Networks India Pvt. Ltd., Ward –…

Asst.C.I.T., Bangalore vs. M/S Fidelity Business Services India Pvt. Ltd., Bangalore

In the result, both the appeals of the assessee and revenue are partly allowed in the terms indicated above

Bench: Shri A. K. Garodia & Smt. Beena Pillaiit(Tp)A No.575/Bang/2016 Assessment Year : 2011-12 Assistant Commissioner Of Income Tax, M/S. Fidelity Business Services India Circle-3(1)(1), Pvt. Ltd., Bengaluru. Vs. Pinehurst, Embassy Golf Links Business Park, Off Intermediate Ring Road, Bengaluru-560071. Pan:Aaacf 6175 E Appellant Respondent C.O. No.24/Bang/2017 (In It(Tp)A No. 575/Bang/2016) Assessment Year : 2011-12 M/S. Fidelity Business Services Assistant Commissioner Of Income Tax, India Pvt. Ltd., Circle 3(1)(1), Bengaluru-560071. Vs. Bangalore. Pan:Aaacf 6175 E Cross Objector Respondent Revenue By : Shri. Muzaffar Hussain, Cit (Dr)(Itat), Bengaluru Assessee By : Shri. G. C. Srivastava, Shri. Uma Shankar, Advocates Date Of Hearing : 13.02.2020 Date Of Pronouncement : 13.03.2020 O R D E R Per Shri A.K.Garodia, Am This Appeal Is Filed By The Revenue & The C. O. Is Filed By The Assessee & These Are Directed Against The Assessment Order Dated 29.01.2016 For Assessment Year 2011-12 Passed By The Ao Under Section 143(3) R.W.S. 144C Of The Income Tax Act, 1961 As Per The Directions Of Drp.

…l of the revenue, there is one issue in respect of corporate tax regarding reduction of some expenses from total turnover also while computing deduction u/s 10A by following the judgment of Hon'ble Karnataka High Court rendered in the case of Tata Elxsi Ltd., 349 ITR 98. This judgment is now approved by Hon'ble apex court also. Hence, we find no infirmity in the directions of DRP on this issue. 11. In the result, both the appeals of the assessee and revenue are partly allowed in the terms indicated above. 6. By respectfully following this Tribunal order, we hold that these 5 comparables are not good comparables f…

Sungard Solutions (India) Private Limited, Bangalore vs. ACIT, Bangalore

In the result, cross appeals are partly allowed

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

…es were directed to be excluded both from the export turnover and total turnover by the CIT(A) while computing deduction u/s.10A of the Act. This issue is no longer res integra and has been settled by the Hon’ble Karnataka High Court in the case of Tata Elxsi 349 ITR 98 (Karnataka) wherein it was held that whatever is excluded from the Export turnover should also be excluded IT(TP)A Nos. 1041 & 1379 & 1106/Bang/2011 Page 7 of 37 from the total turnover. Hence, there is no merit in this ground of appeal of the revenue. 7.1 RPT filter of 0%:- We have heard the ld. AR as well as ld. DR and considered the relevant…

DCIT, Bangalore vs. Sungard Solutions (India) Pvt. Ltd., Bangalore

In the result, cross appeals are partly allowed

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

…es were directed to be excluded both from the export turnover and total turnover by the CIT(A) while computing deduction u/s.10A of the Act. This issue is no longer res integra and has been settled by the Hon’ble Karnataka High Court in the case of Tata Elxsi 349 ITR 98 (Karnataka) wherein it was held that whatever is excluded from the Export turnover should also be excluded IT(TP)A Nos. 1041 & 1379 & 1106/Bang/2011 Page 7 of 37 from the total turnover. Hence, there is no merit in this ground of appeal of the revenue. 7.1 RPT filter of 0%:- We have heard the ld. AR as well as ld. DR and considered the relevant…

Sungard Solutions (India) Private Limited, Bangalore vs. ACIT, Bangalore

In the result, cross appeals are partly allowed

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

…es were directed to be excluded both from the export turnover and total turnover by the CIT(A) while computing deduction u/s.10A of the Act. This issue is no longer res integra and has been settled by the Hon’ble Karnataka High Court in the case of Tata Elxsi 349 ITR 98 (Karnataka) wherein it was held that whatever is excluded from the Export turnover should also be excluded IT(TP)A Nos. 1041 & 1379 & 1106/Bang/2011 Page 7 of 37 from the total turnover. Hence, there is no merit in this ground of appeal of the revenue. 7.1 RPT filter of 0%:- We have heard the ld. AR as well as ld. DR and considered the relevant…

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

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

Bench: Shri. A. K. Garodia & Smt. Beena Pillaiit(Tp)A 593/Bang/2012 Assessment Year : 2007 – 08

…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 593/Bang/2012 Assessment Year : 2007 – 08 M/s. Netapp India Pvt. Ltd., Deputy Commissioner of (formerly Network Appliance Income Tax, Systems (India) Pvt. Ltd.,), Circle – 12(2), Bangalore. 3rd Floor, Fair Winds Block, Vs. EGL Software Park, Off Intermediate Ring Road, Bangalore – 560 071. PAN NO : AABCN 4063 A APPELLANT RESPONDENT & IT(TP)A 687/Bang/2012 Assessment Year : 2007 – 08 Deputy Commissioner of M/s. Netapp India Pvt. Income Tax, Circle – 12(2), Ltd.,…

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

In the result, the revenue’s appeal is partly allowed to the extent of its prayer for inclusion of R

Bench: Shri N.V Vasudevan, Vice- & Shri B.R.Baskaranit(Tp) A Nos.481/Bang/2016 (Assessment Year : 2011-12) The Dy. Commissioner Of Income-Tax, Circle-1(1)(2), Room No.242, 2Nd Floor, Bmtc Building 80 Feet Road, Koramangala, Bengaluru-560095. …. Appellant Vs. M/S Brocadecommunications Systems Pvt.Ltd. 7Th Floor, A Wing, Tower 3, Phase I, Vrindavan Tech Village, Sez Outer Ring Road, Deverabeesanahalli Village, Varthur Hobli, Bangalore-560 037. Pan – Aaccb4490N ….. Respondent Co No.59/Bang/2017 (By Assessee) (Assessment Year : 2011-12) Assessee By : Shri T.Suryanarayana & Ms.Manasa Ananthan, Advocates Revenue By : Mr.Muzaffar Hussain, Cit (Dr) Date Of Hearing : 17-02-2020 Date Of Pronouncement : 19-02-2020 O R D E R

…e 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 it was held that while computing deduction u/s.10A of the Act expenses that are reduced from the export turnover should also be reduced from the total turnover. The CIT(A) however upheld the alternative prayer of the Assessee. 20. Aggrieved by the order of CIT(A), the Revenue has raised Gr.No.8 & 9 before the Tribunal. IT(TP)A No…