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[Cites 1, Cited by 1]

Income Tax Appellate Tribunal - Bangalore

Assistant Commissioner Of Income Tax ... vs M/S Mcafee Software India Pvt Ltd , ... on 14 March, 2018

                     IN THE INCOME TAX APPELLATE TRIBUNAL
                              "C" BENCH : BANGALORE

       BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND
            SHRI. JASON P BOAZ, ACCOUNTANT MEMBER

                                 ITA No.2555/Bang/2017
                                Assessment Year : 2010-11

    The Asst. Commissioner of            Vs. M/s. McAfee Software (India)
    Income Tax,                              Pvt. Ltd.,
    Circle -4(1)(2), Bangalore,              Embassy Golf Links Business Park,
    Room No. 230,                            Pine Valley, 2nd Floor, I.R.R.Road,
    2nd Floor, BMTC Building,                Bengaluru - 560 071.
    80 Feet Road, 6th Block,                 PAN : AABCN 3175 H
    Koramangala,
    Bengaluru - 560 095.

                Appellant                                    Respondent

              Revenue by          : Dr. P. V. Pradeep Kumar,
                                    Additional CIT
              Assessee by         : Shri. K. R. Vasudevan, Advocate

                      Date of hearing       : 01.03.2018
                      Date of Pronouncement : 14.03.2018

                                        ORDER

Per Sunil Kumar Yadav, JM :

This appeal is preferred by the Revenue against the order of the CIT(A), inter alia, on following grounds:

1. The Order of the Ld.CIT (A) is opposed to the law and facts of the case.
2. The CIT (A) was not justified in directing the AO to recompute the deduction allowable u/s 1OA of the Act after reducing expenditure incurred in foreign currency towards telecommunication expenses & foreign travel expenses from the export turnover.
3. The Ld.CIT (A) ought to have appreciated that there is no provision in Sec.1OA which requires the concerned ex penses, whic h are required to be reduced from the export turnover as per clause (iv) of the Explanation to Section 1OA to be reduced from the total ITA No. 2555/Bang/2017 Page 2 of 2 turnover also.
4. On the facts and circumstances of the case, the Ld.CIT (A) has erred in directing to follow the ratio laid down by the Hon'ble HG in the case of CIT Vs. Tata Elxsi Ltd while computing the deduction u/s 10A, when the Department has filed a SLP before the Hon'ble SC on this issue which is pending adjudication.
5. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT (A) in so far as it is relates to time above grounds may be reversed and that of the Assessing Officer may be restored.
6. The appellant craves leave to add, alter, amend and/or delete any of the grounds that may be urged.

2. During the course of hearing, the learned counsel for the assessee contended that CIT(A) has adjudicated the issue following the judgment of the jurisdictional High Court in the case of CIT Vs. Tata Elxsi Ltd., 349 ITR 98 in which it has been held that wherever any expenditure is excluded from the export turnover, it should also be excluded from the total turnover. Since the CIT(A) has adjudicated the issue following the judgment of jurisdictional High Court, we find no infirmity in his order. Accordingly, we confirm the same.

3. In the result, appeal of the Revenue stands dismissed.

Pronounced in the open court on 14th March, 2018.

              Sd/-                                                  Sd/-
         (JASON P BOAZ)                                     (SUNIL KUMAR YADAV)
        Accountant Member                                      Judicial Member

Bangalore.
Dated: 14th March, 2018.
/NS/*
Copy to:
1. Appellants               2.   Respondent            3. DR
4. CIT                      5.   Guard file


                                                            By order


                                                     Sr. Private Secretary,
                                                      ITAT, Bangalore.