DCIT, CHENNAI v. M/s. Thinksoft Global Services Private Ltd., CHENNAI

ITA 54/CHNY/2010 | 2002-2003
Pronouncement Date: 08-09-2011 | Result: Dismissed

Appeal Details

RSA Number 5421714 RSA 2010
Assessee PAN AABCT0976G
Bench Chennai
Appeal Number ITA 54/CHNY/2010
Duration Of Justice 1 year(s) 7 month(s) 23 day(s)
Appellant DCIT, CHENNAI
Respondent M/s. Thinksoft Global Services Private Ltd., CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 08-09-2011
Date Of Final Hearing 08-09-2011
Next Hearing Date 08-09-2011
Assessment Year 2002-2003
Appeal Filed On 15-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI BEFORE DR. O.K.NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER ITA NOS.54 & 1197(MDS)/2010 ASSESSMENT YEARS: 2002-03 & 2003-04 THE DEPUTY/ASSISTANT COMMISSIONER OF INCOME-TAX COMPANY CIRCLE III(2) CHENNAI. VS. M/S.THINKSOFT GLOBAL SERVICES LTD. TYPE II NO.5 DR. VSI ESTATE THIRUVANMIYUR CHENNAI-41. PAN AABCT0976G. (APPELLANT) (RESPONDENT) APPELLANT BY : DR. I.V IJAYAKUMAR IRS CIT-DR. RESPONDENT BY : NONE DATE OF HEARING : 8 TH SEPTEMBER 2011 DATE OF PRONOUNCEMENT : 8 TH SEPTEMBER 2011 O R D E R PER DR.O.K.NARAYANAN VICE-PRESIDENT: THESE TWO APPEALS ARE FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEARS ARE 2002-03 AND 2003-04. THE APPEALS ARE DIRECTED AGAINST THE ORDERS OF THE COMM ISSIONER OF INCOME-TAX(APPEALS)-III AT BANGALORE DATED 26-2-200 9 AND 25-9- 2009. THE APPEAL FOR THE ASSESSMENT YEAR 2002-03 A RISES OUT OF - - ITA NOS.54 & 1197 OF 2010 2 THE ASSESSMENT COMPLETED UNDER SECTION 143(3) AND T HE APPEAL FOR THE ASSESSMENT YEAR 2003-04 ARISES OUT OF THE A SSESSMENT COMPLETED UNDER SECTION 143(3) READ WITH SECTION 14 7 OF THE INCOME-TAX ACT 1961. 2. THE ASSESSEE IN THIS CASE HAD CLAIMED THE BENEF IT AVAILABLE UNDER SECTION 10A OF THE ACT. WHILE GRAN TING THE SAID RELIEF THE ASSESSING AUTHORITY HAD EXCLUDED ITEMS L IKE CONNECTIVITY CHARGES INTERNET CHARGES AND EXPENSES INCURRED IN FOREIGN CURRENCY FROM THE EXPORT TURNOVER BUT NO C ORRESPONDING REDUCTION WAS MADE FROM THE TOTAL TURNOVER. 3. IN FIRST APPEALS THE COMMISSIONER OF INCOME- TAX(APPEALS) HELD THAT WHEN CERTAIN ITEMS ARE DEDUC TED FROM THE EXPORT TURNOVER CORRESPONDING DEDUCTIONS MUST BE M ADE FROM THE TOTAL TURNOVER AS WELL. HE DIRECTED THE ASSESS ING AUTHORITY ACCORDINGLY. 4. THE REVENUE IS AGGRIEVED AND THEREFORE THESE APPEALS BEFORE US. 5. THE COMMON CONTENTION OF THE REVENUE IS THAT IF THE ITEMS EXCLUDED FROM THE EXPORT TURNOVER ARE EXCLUDE D FROM THE - - ITA NOS.54 & 1197 OF 2010 3 TOTAL TURNOVER ALSO THE VERY PURPOSE OF EXCLUDING THOSE ITEMS FROM THE EXPORT TURNOVER WOULD BE DEFEATED. THE VE RY SAME ISSUE WAS CONSIDERED BY THE MADRAS SPECIAL BENCH OF THE TRIBUNAL (BENCH-D) IN THE CASE OF ITO VS. M/S. SAK SOFT LTD. 121 TTJ 865 WHERE THE SPECIAL BENCH HAS HELD THAT THE ADJUSTMENT MUST BE MADE BOTH IN THE NUMERATOR AND DENOMINATOR. IN VIEW OF THE SPECIAL BENCH DECISION WE FIND THAT THE ORD ERS OF THE COMMISSIONER OF INCOME-TAX(APPEALS) ARE SUSTAINABLE IN LAW. 6. IN RESULT THESE TWO APPEALS FILED BY THE REVENU E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY THE 8 TH OF SEPTEMBER 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI DATED THE 8 TH SEPTEMBER 2011. V.A.P. COPY TO: APPELLANT/ RESPONDENT/ CIT/ CIT(A) /D.R./G.F.