Appeal Details
| RSA Number | 110022514 RSA 2009 |
|---|---|
| Assessee PAN | AAFCS9954D |
| Bench | Hyderabad |
| Appeal Number | ITA 1100/HYD/2009 |
| Duration Of Justice | 2 month(s) 1 day(s) |
| Appellant | ACIT, Hyderabad |
| Respondent | M/s Zavata India Pvt. Ltd., Hyderabad |
| Appeal Type | Income Tax Appeal |
| Pronouncement Date | 08-01-2010 |
| Appeal Filed By | Department |
| Order Result | Dismissed |
| Bench Allotted | B |
| Tribunal Order Date | 08-01-2010 |
| Date Of Final Hearing | 06-01-2010 |
| Next Hearing Date | 06-01-2010 |
| Assessment Year | 2005-2006 |
| Appeal Filed On | 06-11-2009 |
| Judgment Text |
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1100/HYD/2009 : ASSTT. YEAR 200 5-06 ACIT CIRCLE 3(3) HYDERABAD VS M/S ZAVATA INDIA (P) LTD. HYDERABAD (PAN AAFCS9954D) (APPLICANT) (RESPONDENT) APPLICANT BY : SMT. VASUNDHARA SINHA DR RESPONDENT BY : SHRI PRASANT JENA O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGA INST THE ORDER OF CIT(A)-IV HYDERABAD DATED 27.8.2009 AND PE RTAINS TO THE ASSESSMENT YEAR 2005-06. 2. THE FIRST GROUND IN THE REVENUE APPEAL IS THAT THE CIT(A) ERRED IN HOLDING THE COMMUNICATIONS CHARGES REDUCED FRO M THE EXPORT TURNOVER AS WELL AS FROM THE TOTAL TURNOVER EVEN THO UGH THERE IS NO SUCH PROVISION IN THE SECTION 10A OF THE INCOME TAX ACT. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. THIS ISSUE HAS BEEN SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL IN THE CASE OF ITO VS. SAK SOFT LTD. (313 ITR (AT) 353) (CHENNAI) (SPECIAL BENCH) WHEREIN IT WAS HELD THAT THE EXPENSES LIKE FREIGHT TELECOMMUNICATION CHARGES OR INSURANCE ATTRIB UTABLE TO 2 2 DELIVERY OF ARTICLES OR THINGS OUTSIDE INDIA WHICH AR E REQUIRED TO BE EXCLUDED FROM THE EXPORT TURNOVER AND DEFINED IN EXP LANATION 2 (III) BELOW SECTION 10B OF THE IT ACT SHOULD ALSO BE EXCLUDED FROM THE FIGURE OF THE TOTAL TURNOVER WHILE APPLYING THE FORMULA PR ESCRIBED BY SUB SECTION (4) OF SECTION 10B OF THE ACT. IN VIEW OF THI S DECISION OF THE SPECIAL BENCH OF TRIBUNAL WE ARE INCLINED TO UPHOLD THE ORDER OF THE CIT(A) ON THIS ISSUE AND ACCORDINGLY THIS GROUND TAKEN BY THE REVENUE IS DISMISSED. 4. THE 2ND GROUND IN THE REVENUE APPEAL IS THAT THE CIT(A) ERRED IN HOLDING THE DISALLOWANCES U/S 40(A) (IA) AND SECTION 36 40A AND 40 (A) (IA) ARE ALSO ELIGIBLE FOR DEDUCTION U/S 10 A OF THE INCOME TAX ACT. 5. AFTER HEARING FROM BOTH THE PARTIES WE ARE O F THE OPINION THAT THIS ISSUE HAS ALSO COVERED BY THE ORDER OF THE TRI BUNAL DATED 29.9.2008 IN ITA NO.1016/HYD/2007 FOR THE ASSESSMENT YEA R 2004-05 IN THE CASE OF DCIT HYDERABAD VS. PLANT ONLINE (P) LT D. WHEREIN IT WAS HELD THAT THE PROFIT OF THE UNDERTAKING WHICH HAS TO BE CONSIDERED FOR COMPUTING DEDUCTION U/S 10B OF THE ACT IS THE PROFIT WH ICH HAS BEEN ARRIVED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 30 TO 43D OF THE ACT AND THUS TAKING INTO ACCOUNT THE DISALLOWANCES MADE U/S 4 3B OF THE ACT AND THE DISALLOWANCE COVERED UNDER THE PROVISIONS OF TH E ABOVE SECTIONS HAS TO BE TAKEN INTO ACCOUNT FOR THE PURPOSE OF COMPUTAT ION OF DEDUCTION U/S 10A OF THE INCOME TAX ACT. ACCORDINGLY WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) AND THE SAM E IS CONFIRMED. 3 3 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE COURT ON 8.1.2010. SD/- SD/- (N.R.S. GANESAN) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 8TH JANUARY 2010. COPY FORWARDED TO: 1. ACIT CIRCLE 3 (3) HYDERABAD 2. M/S ZAVATA INDIA ((PVT) LTD. S.Y. NO.185(P) KAL AJYOTHI PRESS 2ND FLOOR KONDAPUR SERLINGAMPALLY HYDERABAD 3. CIT(A)-IV HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP
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