Income Tax Appellate Tribunal - Delhi
Gta Data Services (India) Pvt. Ltd., New ... vs Department Of Income Tax on 2 July, 2009
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : C : NEW DELHI
SHRI I. C. SUDHIR, JUDICIAL MEMBER
AND
SHRI A.N. PAHUJA, ACCOUNTANT MEMBER
ITA Nos. 452, 453/Del/2012
Assessment Years: 2007- 2008, 2006-07
ITO vs. GTA Data Services (India) Pvt. Ltd.
Ward - 12 (3) 129, Okhla Indl. Area
New Delhi. Phase III
New Delhi 110 020
AABCG3953C
(Appellant) (Respondent)
Appellant by : Shri Satpal Singh, Sr. DR
Respondent by : Shri Arun Bansal, CA
ORDER
PER I.C. SUDHIR, JUDICIAL MEMBER
The revenue has impugned firs appellate order on the common grounds involving the issue as to whether the Ld. CIT(A) was justified in deleing the addition of Rs. 12,93,570/- in asstt. Year 2007-08 and Rs. 14,26,190/- in assessment year 2006-07 by recalculating the deduction u/s 10A of the Act.
2. At the outset Ld. AR pointed out that the issue raised in the present appeals is fully covered by the first appellate order dated 2.7.2009 for the assessment year 2005-06 in the case of assesee against which the 2 ITA No. 452,453/Del/2012 revenue did not prefer appeal before the Tribunal. In other words the revenue has accepted the first appellate order on the issue passed in favour of the assessee for the assessment year 2005-06. The Ld. AR submitted that while deciding the issue the Ld. CIT(A) in the assessment year 2005-06 has followed several decisions of the Tribunal and others, as mentioned in the first appellate order, a copy has been made available. The Ld. AR pointed further that in its recent decisions the Tribunal, Hon'ble Delhi High Court, the Hon'ble Bombay High Court and Hon'ble Karnataka High Court have also been pleased to decide an identical issue in favour of the assesee. He referred the following latest decisions in this regard :-
1. CIT Vs. Genpact India, 2011 - (IT2)-GJX-0590-DEL
2. CIT vs. Gem Plis Jewellery India Ltd. (2011) 330 ITR 175 Bombay
3. CIT vs. Tata Elxsi Ltd. , ITA No. 70/2009 dated 30.8.2011 (Karnataka High Court)
3. Ld. DR on the other hand relied upon the assessment order.
4. The relevant facts are that the assessee company was incorporated on 14.5.2003 and is 100% export oriented unit (EOU) registered with the scheme of Software Technology pack of India(STPI), NOIDA. During the assessment years under consideration the assessee derived its revenue from information Technology Enabled back office operation services like accounting, data and transaction processing, invoice processing, account receivable and other back room office functions. The assessee claimed 3 ITA No. 452,453/Del/2012 deduction u/s 10A of the Act on export turn over. The AO calculated the claimed deduction after excluding the communication expenses as well as traveling expenses incurred in foreign currency from export turn over but not excluded the same from total turn over i.e. without considering that the numerator and denumerator could have the same components while calculating any deduction or exemption of export turn over.
5. The assessee preferred first appeal and submitted in detail the factual and legal position against the assessment order on the issue. Being convinced with the submission of the assessee, the Ld. CIT(A) has allowed the claimed deduction u/s 10A of the assessee appreciating the factual and legal position that amount incurred in foreign currency should be excluded from both export turn over as well as from total turn over for determining the deduction u/s 10A of the Act. We also find that the Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs. Genpact India (supra) has been pleased to express the same view. In this regard the Hon'ble High Court of Delhi has concurred with the decision of Hon'ble Bombay High Court in the case of CIT vs. Gen Plus Jewellery India Ltd. (supra) and Hon'ble Karnataka High Court in the case of CIT vs. Tata Elxsi Ltd. (supra). Under these circumstances we do not find infirmity in the first appellate order in question on the issue as the Ld. CIT(A) has rightly directed the AO to recalculate the deduction claimed u/s 10A by excluding the expenses on account of telecommunication and traveling incurred in 4 ITA No. 452,453/Del/2012 foreign currency both from export turn over as well as total turn over. The first appellate order in this regard is thus upheld. The issue raised in the ground is thus decided in favour of the assessee. The related grounds are therefore rejected.
6. Consequently appeals are dismissed.
Order is pronounced in the open court on 26th October, 2012.
sd/- sd/-
(A.N. PAHUJA) ( I.C. SUDHIR )
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated
*Veena
Copy of order forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR
By Order
Deputy Registrar, ITAT