Income Tax Appellate Tribunal - Bangalore
Anz Operation & Technology Pvt. Ltd.,, ... vs Department Of Income Tax on 2 November, 2010
MP.97/Bang/2009 Page - 1
IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCH 'B', BANGALORE
BEFORE DR. O. K. NARAYANAN, VICE PRESIDENT
AND
SHRI. GEORGE GEORGE K, JUDICIAL MEMBER
Misc.Petition No.97/Bang/2009
(In I.T.A No.69/Bang/2008)
(Assessment Year : 2004-05)
Deputy Commissioner of Income-tax,
Circle -11(1), Bangalore .. Applicant
v.
M/s. ANZ Operation & Technology P. Ltd.,
Embassy Golf Links Business Park,
Off Intermediate Ring Road,
Bangalore 560 052 .. Respondent
Applicant by : Shri. Goutam Dalve, CA
Respondent by : Shri. Pratap Singh, Addl.CIT
ORDER
PER DR. O. K. NARAYANAN, VICE PRESIDENT :
This miscellaneous petition is in the nature of rectification petition. It is filed by the Revenue. This petition has been filed in the context of the common order of ITAT, Bangalore Bench, dated.08/08/2008, passed in ITA No.69/Bang/2008 & ITA.26/Bang/2008.
2. The text of the petition filed by the Revenue is extracted below for a better understanding of the issue involved :
MP.97/Bang/2009 Page - 2 "In the order passed by the Hon'ble ITAT, Bangalore Bench, 'B' in ITA No.69/BNG/2008, dated.8.8.2008, the Hon'ble ITAT has allowed the appeal filed by the assessee. The question of reducing expenditure incurred in foreign exchange has neither been referred to nor discussed in the order passed by the Hon'ble ITAT. However, in para 10 on page 6 of the Tribunal's order, the ITAT has allowed the appeal filed by the assessee by directing the Assessing Officer to reduce both telecommunication charges and expenditure incurred in foreign currency from both export turnover and total turnover, while allowing the deduction u/s.10A of the IT Act."
3. We heard both sides and considered the issue. The Tribunal has held that the assessee has not disputed the quantum of the telecommunication charges and the expenditure incurred in foreign currency reduced from the export turnover; the grievance was that such deduction must be made from the total turnover as well to answer the rule of parity. This rule of parity has been upheld by ITAT, Chennai, Special Bench in the case of Saksoft Ltd., in 313 ITR (AT) 353, where the Special Bench has held that such adjustments made in the export turnover should be made in the total turnover as well. Even if the question of reducing the expenditure incurred in foreign exchange has not been specifically raised by the assessee, the said MP.97/Bang/2009 Page - 3 issue is writ large on the materials placed before the Tribunal. Such expenditure incurred by the assessee in foreign currency are analogous to the telecommunication charges raised in the grounds of appeal. Therefore, as a final fact-finding authority, the Tribunal cannot overlook a demanding issue unresolved on the ground of simple technicalities. Therefore, we find that the Tribunal has not made any mistake per se in passing the said order pointed out by the Revenue.
4. In result, this miscellaneous petition filed by the Revenue is without any merit. It is dismissed.
Order pronounced on Tuesday, the 02nd day of November, 2010, at Bangalore.
Sd/- Sd/-
(GEORGE GEORGE K) (DR. O. K. NARAYANAN)
JUDICIAL MEMBER VICE PRESIDENT