Income Tax Appellate Tribunal - Bangalore
M/S Tata Elxsi Limited , Bangalore vs Department Of Income Tax on 4 December, 2012
0IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCH 'B', BANGALORE
BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER
and
SHRI JASON P. BOAZ, ACCOUNTANT MEMBER
ITA No.398/Bang/2012
(Assessment year: 2006-07)
M/s.Tata Elexsi Ltd.
ITPB Road, Hoody, Whitefield Road,
Bangalore. ... Appellant
PAN :AAACT472Q
Vs.
Asst. Commissioner of Income-tax
Circle 12(4),
Bangalore. ... Respondent
AND
ITA No.479/Bang/2012
(Assessment year: 2006-07)
Deputy Commissioner of Income-tax,
Circle 12(4),
Bangalore. ... Appellant
Vs.
M/s.Tata Elexsi Ltd.
Bangalore. ... Respondent
Assessee by: Shri Padam Chand Khincha, CA.
Respondent by : Shri Farhat Hussain Qureshi,CIT-II.
Date of hearing: 04-12-2012.
Date of pronouncement: 04-12-2012.
O R D E R
Per Smt. P.MADHAVI DEVI, JM:
These are cross appeals by the assessee as well as the revenue for the assessment year 2006-07.
ITA Nos.398 & 479/Bang/2012 Page 2 of 3
2. The assessee is aggrieved by the order of the CIT(A) in concluding that the following are to be excluded from export turnover in computing deduction u/s 10A of the Income-tax Act, 1961 [hereinafter referred to as "the Act"]:
(i) The telecommunication charges of `1,01,53,533/-,
(ii) Premium paid to Export Credit Guarantee Corporation of India Ltd., (ECGC) of `23,99,000/- for protecting the assessee against the risk of loss on account of non-
payment of dues by overseas customers due to bankruptcy, and
(iii) Expenses incurred in foreign currency amounting to `41,62,42,000/-.
2.1 It is submitted by the learned counsel for the assessee that the above expenses are connected with the business of the assessee and therefore are not to be excluded from the export turnover while computing deduction u/s 10A of the Act. He submitted that the CIT(A), however, has directed the AO to exclude these expenses from both the export turnover and the total turnover for the purpose of deduction u/s 10A. He submitted that the revenue is in appeal against the said direction of the CIT(A). Though the learned counsel for the assessee did not leave the grounds of appeal in the assessee's appeal, we find that the ITA Nos.398 & 479/Bang/2012 Page 3 of 3 alternative ground of the assessee has been accepted by the CIT(A) and the issue is also covered by the decision of the jurisdictional High Court in the assessee's own case. In view of the same, we do not see any reason to interfere with the order of the CIT(A). Without going into the merits of the assessee's appeal, both the assessee's as well as the revenue's appeals are dismissed.
Order pronounced in the open court on 4th December, 2012.
Sd/- sd/-
(Jason P. Boaz) (Smt.P.Madhavi Devi)
ACCOUNTANT MEMBER JUDICIAL MEMBER
eksrinivasulu
Copy to :
1. Appellant
2. Respondent
3. CIT(A) concerned
4. CIT
5. DR, ITAT, Bangalore
6. Guard file
By Order
Senior Private Secretary
Income-tax Appellate Tribunal,
Bangalore