DCIT, CHENNAI v. Data Software Research Company Private Limited, CHENNAI

ITA 1285/CHNY/2015 | 2010-2011
Pronouncement Date: 31-07-2015

Appeal Details

RSA Number 128521714 RSA 2015
Assessee PAN AAACD1271H
Bench Chennai
Appeal Number ITA 1285/CHNY/2015
Duration Of Justice 2 month(s) 3 day(s)
Appellant DCIT, CHENNAI
Respondent Data Software Research Company Private Limited, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2015
Appeal Filed By Department
Bench Allotted A
Date Of Final Hearing 22-07-2015
Next Hearing Date 22-07-2015
Assessment Year 2010-2011
Appeal Filed On 27-05-2015
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH CHE NNAI . . ! ! ! ! ' ' ' ' # # # # BEFORE SHRI A. MOHAN ALANKAMONY ACCOUNTANT MEMBER & SHRI V. DURGA RAO JUDICIAL MEMBER I.T.A.NOS.1284 AND 1285/MDS/2015 ASSESSMENT YEARS :2008-09 AND 2010-11 THE DEPUTY COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 1(1) CHENNAI 600 034. VS. M/S. DATA SOFTWARE RESEARCH COMPANY PRIVATE LIMITED NO. 6 SMITH ROAD CHENNAI 600 002. [PAN: AAACD1271H] ( $% $% $% $% /APPELLANT ) ( &'$% &'$% &'$% &'$% / RESPONDENT ) $% ( ) / APPELLANT BY : SHRI P. RADHAKRISHNAN JCIT &'$% ( ) / RESPONDENT BY : SHRI VIKRAM VIJAYARAGHAVAN ADVOCATE ( * / DATE OF HEARING : 22.07.2015 + ( * /DATE OF PRONOUNCEMENT : 31.07.2015 - - - - / O R D E R PER V. DURGA RAO JUDICIAL MEMBER : BOTH THE APPEALS FILED BY THE REVENUE PERTAINING TO THE SAME ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS O F THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1 CHENNAI BOTH DATED 27.0 1.2015 RELEVANT TO THE ASSESSMENT YEARS 2008-09 AND 2010-11. 2. THE ONLY COMMON ISSUE INVOLVED IN BOTH THE APPE ALS OF THE REVENUE IS WITH REGARD TO SETTING OFF OF THE LOSSES OF THE NON-10B UNIT AGAINST THE PROFITS OF 10B UNITS. THE LD. CIT(A) BY FOLLOWING HIS OWN ORDER FOR THE I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NOS SS S. .. .1 11 12 22 28 88 84 44 4 & && & 1 11 12 22 28 88 85 55 5/M/ /M/ /M/ /M/1 11 15 55 5 2 ASSESSMENT YEAR 2006-07 ALLOWED THE GROUND RAISED BY THE ASSESSEE. WHEN THE REVENUE CARRIED THE MATTER IN APPEAL BEFOR E THE TRIBUNAL FOR THE ASSESSMENT YEAR 2006-07 THE TRIBUNAL CONFIRMED THE ORDER PASSED BY THE LD. CIT(A). NOW THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL FOR THE ASSESSMENT YEARS 2008-09 AND 2010-11. 3. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 2006-07 VIDE ORDER DATED 17.07.2015. 4. ON THE OTHER HAND THE LD. DR RELIED ON THE ORD ER OF THE ASSESSING OFFICER. 5. AFTER HEARING BOTH SIDES WE FIND THAT ON SIMIL AR ISSUE ON IDENTICAL FACTS THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 IN I.T.A. NO. 1837/MDS/2014 VIDE ORDER DATED 17.07. 2015 DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY OBSERVING AS UNDER: 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EI THER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE SPECIAL BENCH OF THIS TRIBUNAL IN SCIENTIFIC ATLANDA TEC. P. LTD. (S UPRA) FOUND THAT THE BROUGHT FORWARD LOSSES AND DEPRECIATION NEED NOT BE SET OFF FOR COMPUTING DEDUCTION U/S 10B OF THE ACT. WE HAVE ALS O GONE THROUGH THE ORDER OF THIS TRIBUNAL IN SWORD GLOBAL (I) P. LTD. (SUPRA). THIS DECISION WAS DELIVERED BY A DIVISION BENCH OF THIS TRIBUNAL. THEREFORE THIS TRIBUNAL HAS TO PREFER A LARGER BENCH DECISION IN T HE CASE OF SCIENTIFIC ATLANDA TEC. P. LTD. (SUPRA). SINCE THE CIT(A) HAS FOLLOWED THE I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NOS SS S. .. .1 11 12 22 28 88 84 44 4 & && & 1 11 12 22 28 88 85 55 5/M/ /M/ /M/ /M/1 11 15 55 5 3 DECISION OF LARGER BENCH THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). ACCORDINGLY THE SAME IS CONFI RMED. 6. RESPECTFULLY FOLLOWING THE DECISION OF THE COOR DINATE BENCH OF THIS TRIBUNAL WE FIND NO REASON TO INTERFERE WITH THE O RDER PASSED BY THE LD. CIT(A) ON THIS ISSUE FOR BOTH THE ASSESSMENT YEARS 2008-09 AND 2010-11. ACCORDINGLY THE APPEALS FILED BY THE REVENUE ARE D ISMISSED. 7. IN THE RESULT BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED ON FRIDAY THE 31 ST OF JULY 2015 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI DATED THE 31.07.2015 VM/- - ( &'*./ 0/ * /COPY TO: 1. $% / APPELLANT 2. &'$% / RESPONDENT 3. 1 ( ) /CIT(A) 4. 1 /CIT 5. /2 &'*' /DR & 6. 3! 4 /GF.