Karnataka High Court
M/S Sasken Communication Technologies ... vs The Deputy Commissioner Of Income Tax on 16 September, 2014
Bench: N.Kumar, Rathnakala
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IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 16TH DAY OF SEPTEMBER, 2014
PRESENT
THE HON'BLE MR.JUSTICE N.KUMAR
AND
THE HON'BLE MRS.JUSTICE RATHNAKALA
INCOME TAX APPEAL NOS.40-42 OF 2014
C/W
INCOME TAX APPEAL NO.10 OF 2013
INCOME TAX APPEAL NO. 11 OF 2013
INCOME TAX APPEAL NO.403 OF 2013
INCOME TAX APPEAL NO.400 OF 2013
INCOME TAX APPEAL NO.69 OF 2013
INCOME TAX APPEAL NO.149 OF 2014
I.T.A NOS.40-42/2014
BETWEEN:
M/S.SASKEN COMMUNICATION
TECHNOLOGIES LTD.,
# 139/25, AMARJYOTHI LAYOUT,
DOMLUR RING ROAD,
BANGALORE - 560 071
(REPRESENTED BY ITS
CHAIRMAN & MANAGING DIRECTOR,
SRI RAJIV C.MODY,
S/O SRI.CHANDRAKANT J MODY,
AGED ABOUT 54 YEARS)
...APPELLANTS
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE 12(3), NO.14/3-A,
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RASHTROTHANA BHAVAN
NRUPATHUNGA ROAD
BANGALORE - 560 001
...RESPONDENT
(BY SRI. K.V.ARAVIND, ADV.)
THESE INCOME TAX APPEALS ARE FILED UNDER
SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF
ORDER DATED 11/10/2013 PASSED IN CO NO.72/BANG/2013
(IN ITA NO.176/BANG/2013) FOR THE AY 2004-2005, ITA
NO.1645/BANG/2012 FOR THE AY 2006-2007, ITA
NO.1646/BANG/2012 FOR THE AY 2008-2009, PRAYING THAT
THIS HON'BLE COURT MAY BE PLEASED TO:
I. FORMULATE THE SUBSTANTIAL QUESTION OF LAW
STATED ABOVE.
II. ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED
ORDER (TO THE EXTENT PREJUDICIAL TO THE
APPELLANT) OF THE INCOME TAX APPELLATE
TRIBUNAL, BANGALORE 'C' BENCH, IN CO
NO.72/BANG/2013 (IN ITA NO. 176/BANG/2013) FOR
THE AY 2004-2005, ITA NO.1645/BANG/2012 FOR THE
AY 2006-2007, ITA NO.1646/BANG/2012 FOR THE AY
2008-2009, DATED:11/10/2013.
I.T.A NO.10/2013
BETWEEN:
M/S.MINDTREE LTD.,
(FORMERLY MINDTREE CONSULTING
PVT. LTD.),
GLOBAL VILLAGE, RVCE POST,
MYLASANDRA, MYSORE ROAD,
BENGALURU - 560 059
...APPELLANT
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE ASSISTANT COMMISSIONER OF INCOME TAX,
LARGE TAX UNIT, CIRCLE - 12(1),
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JSS TOWERS, 100 FEET RING ROAD,
BANASHANKARI 3RD STAGE,
BENGALURU - 560 085
...RESPONDENT
(BY SRI K.V.ARAVIND, ADV.)
THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF I.T. ACT, 1961, ARISING OUT OF ORDER DATED 31-
10-2012 PASSED IN ITA NO.1328/BANG/2011, FOR THE
ASSESSMENT YEAR 2004-2005, PRAYING THAT THIS HON'BLE
COURT MAY BE PLEASED TO:
I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN,
II. ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED
ORDER (TO THE EXTENT PREJUDICIAL TO THE
APPELLANT) OF THE ITAT, BENGALURU, 'B' BENCH
BEARING ITA NO.1328/BANG/2011 DATED 31/10/2012.
I.T.A NO.11/2013
BETWEEN:
M/S.MINDTREE LTD.,
(FORMERLY MINDTREE CONSULTING
PVT. LTD.),
GLOBAL VILLAGE, RVCE POST,
MYLASANDRA, MYSORE ROAD,
BENGALURU - 560 059
...APPELLANT
(BY SRI CHYTHANYA K.K, ADV.)
AND:
THE ASSISTANT COMMISSIONER OF INCOME TAX,
LARGE TAX UNIT, CIRCLE - 12(1),
JSS TOWERS, 100 FEET RING ROAD,
BANASHANKARI 3RD STAGE,
BENGALURU - 560 085
...RESPONDENT
(BY SRI K.V.ARAVIND, ADV.)
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THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF I.T. ACT, 1961, ARISING OUT OF ORDER DATED 31-
10-2012 PASSED IN ITA NO.1347/BANG/2011, FOR THE
ASSESSMENT YEAR 2006-2007, PRAYING THAT THIS HON'BLE
COURT MAY BE PLEASED TO:
I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN,
II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS (TO
THE EXTENT PREJUDICIAL TO THE APPELLANT) OF THE
ITAT, BENGALURU, 'B' BENCH BEARING ITA
NO.1347/BANG/2011 DATED 31/10/2012.
I.T.A NO.403/2013
BETWEEN:
M/S.TATA ELXSI LTD.,
ITPB ROAD, HOODY
WHITEFIELD ROAD
BENGALURU - 560 048
(REPRESENTED BY ITS MANAGING
DIRECTOR, SRI.MADHUKAR DEV,
AGED ABOUT 58 YEARS,
S/O RAJENDRA DEV)
...APPELLANT
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE - 12(4)
14/3, 4TH FLOOR, RASHTROTHANA BHAVAN
NRUPATHUNGA ROAD
BANGALORE - 560 001
...RESPONDENT
(BY SRI K.V.ARAVIND, ADV.)
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THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER
DATED 05-07-2013 PASSED IN ITA NO.1410/BANG/2012, FOR
THE ASSESSMENT YEAR 2008-2009, PRAYING THIS HON'BLE
COURT TO:
I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN,
II. ALLOW THE APPEAL AND SET ASIDE THE ORDER (TO
THE EXTENT PREJUDICIAL TO THE APPELLANT) OF THE
ITAT, BANGALORE, 'B' BENCH IN ITA
NO.1410/BANG/2012 DATED 05/07/2013.
I.T.A. NO.400/2013
BETWEEN:
M/S. TATA ELXSI LTD.,
ITPB ROAD, HOODY
WHITEFIELD ROAD
BENGALURU - 560 048
(REPRESENTED BY ITS MANAGING
DIRECTOR SRI MADHUKAR DEV,
AGED ABOUT 58 YEARS
S/O RAJENDRA DEV)
...APPELLANT
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE ASSISTANT COMMISSIONER OF
INCOME TAX,
CIRCLE - 12(4)
14/3, 4TH FLOOR,
RASHTROTHANA BHAVAN,
BENGALURU - 560 001
...RESPONDENT
(BY SRI K.V.ARAVIND, ADV.)
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THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER
DATED 12/06/2013 PASSED IN ITA NO.1074/BANG/2012, FOR
THE ASSESSMENT YEAR 2007-2008, PRAYING THIS HON'BLE
COURT TO:
I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN,
II. ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED
ORDER (TO THE EXTENT PREJUDICIAL TO THE
APPELLANT) OF THE ITAT, BENGALURU 'A' BENCH
BEARING ITA NO.1074/BANG/2012 DATED 12/06/2013.
I.T.A. NO.69 OF 2013
BETWEEN:
M/S. TATA ELXSI LTD.,
ITPB ROAD, HOODY
WHITEFIELD ROAD
BENGALURU - 560 048
(REPRESENTED BY ITS MANAGING
DIRECTOR, SRI MADHUKAR DEV,
AGED ABOUT 58 YEARS
S/O RAJENDRA DEV)
...APPELLANT
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE ASSISTANT COMMISSIONER OF
INCOME TAX,
CIRCLE - 12(4)
14/3, 4TH FLOOR,
RASHTROTHANA BHAVAN,
BANGALORE - 560 001
...RESPONDENT
(BY SRI JEEVAN J.NEERALGI, ADV.)
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THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER
DATED 04/12/2012 PASSED IN ITA NO.398/BANG/2012, FOR
THE ASSESSMENT YEAR 2006-2007, PRAYING THAT THIS
HON'BLE COURT MAY BE PLEASED TO:
I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED THEREIN,
II. ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED
ORDER OF THE ITAT, BENGALURU, 'B' BENCH BEARING
ITA NO.398/BANG/2012 DATED 04/12/2012, IN THE
INTEREST OF JUSTICE AND EQUITY.
I.T.A. NO.149 OF 2014
BETWEEN:
M/S.SUBEX LIMITED
ADARSH TECH PARK, OUTER RING ROAD,
DEVARABEESANAHALLI,
BENGALURU - 560 037
(REPRESENTED BY ITS GLOBAL HEAD -
FINANCE, LEGAL & COMPANY SECRETARY,
SRI GANESH K.V.,
AGED ABOUT 52 YEARS,
S/O LATE SUNDARM
VENKATARAMANAN KANGEYAM)
...APPELLANT
(BY SRI CHYTHANYA K.K., ADV.)
AND:
THE DEPUTY COMMISSIONER OF INCOME TAX,
CIRCLE - 12(3), 14/3, 4TH FLOOR,
RASHTROTHANA BHAVAN,
NRUPATUNGA ROAD,
BANGALORE - 560 001
...RESPONDENT
(BY SRI K.V.ARAVIND, ADV.)
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THIS INCOME TAX APPEAL IS FILED UNDER SECTION
260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER
DATED 13/11/2013 PASSED IN ITA NO.1430/BANG/2010, FOR
THE ASSESSMENT YEAR 2006-2007, PRAYING THAT THIS
HON'BLE COURT TO:
I. FORMULATE THE SUBSTANTIAL QUESTION OF LAW
STATED ABOVE.
II. ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED
ORDER OF THE INCOME TAX APPELLATE TRIBUNAL,
BENGALURU 'C' BENCH BEARING IN ITA
NO.1430/BANG/2010 DATED: 13/11/2013.
THESE IT APPEALS COMING ON FOR ADMISSION THIS
DAY, N.KUMAR J., DELIVERED THE FOLLOWING:
JUDGMENT
These appeals are preferred by the assessees, challenging the order passed by the Tribunal. Though the Tribunal gave them relief, they have preferred these appeals challenging the other grounds which was not considered by the Tribunal.
2. In all these cases, the assessees putforth two grounds, they are as follows:
a. Whether the telecommunication expenses, insurance charges, personnel expenses, professional expenses, branch office expenses and other expenses incurred in foreign -9- exchange should not be excluded from the export turnover for the purpose of computing deduction under Section 10B of the Income Tax Act, 1961?
b. If the said expenses are to be excluded from the export turnover, then the same should also be excluded from the total turnover for the purpose of computing deduction under Section 10B of the Income Tax Act, 1961?
3. The tribunal has granted the relief upholding the contention of the assessees but did not consider the alternative ground.
4. Now the learned Counsel for the assessees contends that the assessees were entitled to the relief even on the alternative ground and if it is not considered, it is likely that the finding recorded by the Commissioner of Income Tax (Appeals) would stand, which may be held against them in future.
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5. In this circumstance, we deem it proper to remit these matters back to the Tribunal to record the findings on merit, even on the alternative ground also. We make it clear that while considering the said ground, it is open to the assessees to raise such additional grounds which they may choose so.
6. Accordingly, these appeals are remitted back to the Tribunal for fresh consideration. All the contentions are kept open to be decided by the Tribunal. It is made clear that the tribunal shall also go into such other questions of law which may be raised by the assessees on such remand.
Sd/-
JUDGE Sd/-
JUDGE nvj