ACIT, Hyderabad v. M/s Cordys R&D India P Ltd, Hyderabad

ITA 1125/HYD/2010 | 2004-2005
Pronouncement Date: 20-01-2011 | Result: Dismissed

Appeal Details

RSA Number 112522514 RSA 2010
Assessee PAN AAACB8264E
Bench Hyderabad
Appeal Number ITA 1125/HYD/2010
Duration Of Justice 4 month(s) 28 day(s)
Appellant ACIT, Hyderabad
Respondent M/s Cordys R&D India P Ltd, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 20-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 20-01-2011
Assessment Year 2004-2005
Appeal Filed On 23-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1125/H/2010 ASSESSMENT YEAR 2004-05 THE ACIT CIRCLE 1(2) HYDERABAD VS M/S CORDYS R&D (P) LTD. MADHAPUR HYDERABAD (PAN AAACB 8264 E) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. K. KAMASHMI RESPONDENT BY : SHRI PANKAJ JAIN O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTE D AGAINST THE ORDER PASSED BY THE CIT(A) III DATED 15.6.2010 AND PERTAINS TO THE ASSESSMENT YEAR 2004-05. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVEN UE IN ITS APPEAL IS THAT THE CIT(A) ERRED IN GIVING A FINDING THAT T HE COMMUNICATION CHARGES SHOULD BE EXECUTED FROM THE TOTAL TURNOVER FOR THE PURPOSE OF COMPUTATION OF DEDUCTION U/S 10A. 3. AFTER HEARING BOTH THE PARTIES WE ARE OF TH E OPINION THAT SIMILAR ISSUE CAME FOR CONSIDERATION VIDE ORDER OF THIS TRIBUNAL DATED 3.11.2009 IN ASSESSEES OWN CASE IN ITA NO.983/H/20 09 FOR THE ASSESSMENT YEAR 2003-04 WHEREIN IT WAS HELD AS FOLL OWS: 5. AT THE TIME OF HEARING BOTH THE PARTIES AGREED THA T THE ISSUE WITH REGARD TO EXCLUDABILITY OF COMMUNICATION CHARGES BO TH FROM EXPORT TURNOVER AND TOTAL TURNOVER ON MERITS IS COVERED IN FAVOUR OF THE ITA NO.1125/H/2010 M/S CORDYS R&D INDIA (P) LTD. HYDERABAD 2 2 ASSESSEE BY THE DECISION OF SPECIAL BENCH (CHENNAI) OF THE TRIBUNAL IN THE CASE OF ITO VS. SAK SOFT LTD. (313 ITR (AT) 353 ). IN THIS VIEW OF THE MATTER WE FIND NO MERIT IN THE GROUNDS OF THE REVENUE IN THIS APPEAL. FURTHER AT THE RELEVANT POINT OF TIME WHE N THE IMPUGNED ORDER U/S 154 WAS PASSED THERE WAS CONTROVERSY WIT H REGARD TO THIS LEGAL ISSUE ON WHICH TWO VIEWS WERE POSSIBLE. IN THIS VIEW OF THE MATTER RECTIFICATION U/S 154 OF THE ACT IS NOT PER MISSIBLE UNDER LAW. IN THE CIRCUMSTANCES THE CIT(A) IN OUR CONSIDERED VIEW WAS JUSTIFIED IN CANCELLING THE IMPUGNED ORDER OF THE ASSESSING O FFICER PASSED U/S 154 OF THE ACT. WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT(A) AND REJECT THE GROUNDS TAKEN BY THE REVENUE IN THIS APP EAL. 4. RESPECTFULLY FOLLOWING THE ABOVE ORDER OF THI S TRIBUNAL WE DISMISS THE GROUND TAKEN BY THE REVENUE. 5. IN THE RESULT THE APPEAL OF THE REVENUE IN I TA NO.1125/H/2010 STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 20.1.2011 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 21 ST JANUARY 2011 COPY FORWARDED TO: 1. THE ACIT CIRCLE 1 (2) HYDERABAD 2. M/S CORDYS R&D INDIA P LTD. BUILDING D PLOT NO.17 SOFTWARE UNIT LAYOUT HITECH CITY MADHAPUR HYDERA BAD 3. CIT(A)- III HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP