Karnataka High Court
The Commissioner Of Income Tax vs M/S Expert Outsource P Ltd on 1 March, 2011
Bench: N.Kumar, Ravi Malimath
.. 1 ... IN THE HIGH COURT OF KARNATAKA AT BANGALGRE DATED was THE 13* my OF-" MARCH 291:1 PRESENT * "me HONBLE MR. JUSTICE N.KuMA;z*---. [ [__fi _ AND THE HGNELE MRJUSTICEHE' RA \ fI }ZTA.NO.323 OF 2010' BETWEEN: T' " 2 1.
The'%Ct3m§};1issi§t'1ef"cf"'Incofiéé'4tax CA3.B.;;i|r:£ia*;--g,-«~.._V = _ % ~ Queens Road, Bangalolwa. "
," .Encome;"E"ax cifficer
-,_\;va_sr«;i-11(1) ~~~~~ fa.) C.R..Bu:t'd.2.ng,
- _ "Q£f't3§.?'§§S R:_OE§.d, ._aa"rv.g'aitq:e;'.~' .,.APPELLANTS (BS; Srif'K."J':'Aravin¢Lf, Advocate fer Sri M~~.';.f;'Seshacha§a, Advocate) .AW~n.;.
V234/$*E><;:>ea*t Outgeurzje {R12 §.._td., No.20/2, 17"" Creee, Between em 8: 8*" Main, efiaiieehwaram, Bangaiore. __RESP'DNDEi'EJT~.,, >§<>§<>+< This rm fried under section 266-A 0i"'"£'.v-T:.:A:f',»., 1962,, praying to forreuiate. the SUbSt,.':§ntiEi'E'«qi;i£~1S£iQi'i'S._ or-Tiaw; stated therein, aliow the appeal and aside. the"
passed by the ITAT, Bangalore in I.TA*._No.896_,/Bang/;1OG9,'._ dated 17.3.2816, confirming the order of:th'e,'Appe§iiate_7 Commissioner and eenfirm the'i-.,e'rder pass,ed...byr the Iricome Tax, Werd-11(1)i Barrgaiere. " ..
This ETA eorriiri'g'h--ort~ éiiflfinhéission this day, N.KUiviAR 3., delivered i:he"fQ§ioi_rvi{ftg:*«. The re\}enu_e' heéé.'e_refe'ri<e%i----__teiS appear chaliengrng the order passed--__'b\,'Vtii'e Appeétate Tribunal, which hes,,._§j§i;é)rireEd theuerder of the Appeéiate Authority gree.tiiéAg"«tKhe of tax under Section 10A of the short hereinafter referred to as 'AC§r7i 2 -4- ef conversion of the DTA unit into STP unit. Therefore, when the assessee has used the machinery preinoiisiy eeed, which is mere than 29% ef the tetei machinery; the condition ieid fiown n--r,j'ii'er..o:V'S-eetioh"2 1OA(2)(iii) Of the Act are not savi:<iSfie.<:i, §gM'g"4{i'eé;»ieé'i the' said erder, the assessee preférrefiit"'entt"--eVoeeei."t_t:"'«.ff'iie Commissioner of Income»-fax ('AAp.pe'aiVs}~.: weiii considered order by oiecirigVAre!i:e'n.ce-~..on th'e'e.irc.1§§iar issued under Section 108 the severai judgments dea_ii'ng heici that the assessee to':_:-the-...ded'ueVtihettinder Section 10A to the e>_<istingx 'tLin--it_:"ern'd-.'_:E:oiise.q:ieritiy, the conditions iaid dewh i.3'Qfl'dt-Z'i'= sece'o'i§'Ai1ioi:{"2j%(;)(b) and 1OA(2)(ii) & (iii) are iu§'fé;jiiedi.. and"'dVi_i9ec:ted the Assessing Authority to aiiow re}ifiibi'et:§eti'u.§tions tinder Section 10A. Aggrieved by the .SVE3/.5,'('j'.Z'OV'f'C§b"é;.gjV!. fn'e""revenue preferred an appeai to the tribunal ' i.i°he_ revenue is in appeei before us.
wh"i-ch v~.E*iesviEeheifi the said erder. Aggrievee by the same,
3. From the aforesaid facts, it is deer that $ec:t§oh 10A provides for a deduction frem the tetai i_ne§)'m:e-..vVof profits derived by an undertaking from articies er things or cemeeter seft;i3;a_re f{§i'w3'"p:£i:'r.ié{§ {"35 ten"
consecutive assessment 3/ears. '-._Th_jei..tax'=.hei§tia§f :'i3eEii3_Ci cernmences with the esse's_s'r:nent 'yeiare re'i:eA\Q=:fx'nt..VVVtr.:i the.,i' previous year in which the-..V_u--n_»dertei<i.nVg tfegins to manufacture or prodeitei l_susr;h "aVr'tiA:<iie»s or things or computer software. _-"fiecitien_j1C}{'2:_)jjvrescribes certain conditions ._fui.f4i:irinne:nt _._r.:VfjjA--\/,~'.ihiieihithe benefit of 10A Coulci be av-aiEe--d1'§;__ 4' In the the essessee began ope"ta.ticms u:1.?.12.2xOO--3:igwereas the STPI was registered on sThe"'STP authorities some aiso permit the It».eenvers':er§'.-(ifu'en."_'i--ext.s't§ng unit into e STPE unit. The Vigsnrprsse ef'."the"'-STE;scheme is te encourage exports and iv"~'V.'s~e:he'rir:eZ'gtreeides the benefit of cenverting e ETA unit irate ge;iVn4'igva:iueib.E4_e fereign exchange for the eeuntry. The STP -6- a STPI unit and the same shoefd eiso hate good for tax pureeses. CBDT Circefer No.1/2005 dated 06.3.1-,_2005 grants certain benefits under Section 108, circuiar is in the context of Section 108, circuiar equaliy apofies to Section' "i'(3A .elé.o. t'ec:t;.~ the Commissioner of Appeais hate ii-eferred to «. judgments on the point conzte. to1tt2e"~--;eo'ra'cijusion"
that the benefit of S--e§tion'..r'1"(}i§:'--v§'oadd 'aflPso'~..bVe'§ avaiiabie even when an existing"du'n_i't a STPI unit.
In fact, the _m.et:er§al no export of eempeterg 04.08.2004. The L' ease 'Af%:noi'ng recorded by the aepeiéete authority as eel? export commenced. The invoices produced in the ease ,cie'a_r.Ey:esitebélish the said feet. In those_.V¢ircum:~§teVnees, the V-atpgaeitate authority as weii as the trE£3un8_Vi r'AI;€fi?£§3 jijt3t§fii>4:(:V1:"*-Er) extending the benefit of Sectier:
1;1oA to the onogt §'é1~E:'uteseto}e We._doVV'not see any Eliegafity committed by them. %/ );
as the tribunai is afso based on evidence and is.----._i_n accordance with Jaw. We do mt see any szJbs*:éé:r1't§'f5aeir»~., questien of law that arises Fer consideration in app:é's'l'.' Accdrdéngty, the appeaf is dismissed,» ~ Prs*