ITO, Hyderabad v. M/s Surabhi Software People Ltd., Hyderabad

ITA 877/HYD/2010 | 2005-2006
Pronouncement Date: 07-09-2010 | Result: Dismissed

Appeal Details

RSA Number 87722514 RSA 2010
Assessee PAN AAECS9626F
Bench Hyderabad
Appeal Number ITA 877/HYD/2010
Duration Of Justice 2 month(s) 26 day(s)
Appellant ITO, Hyderabad
Respondent M/s Surabhi Software People Ltd., Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 07-09-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 07-09-2010
Assessment Year 2005-2006
Appeal Filed On 11-06-2010
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.877/HYD/2010 ASSESSMENT YEAR 2005-06 THE ITO WARD NO.3(2) HYDERABAD VS M/S SURABHI SOFTWARE PEOPLE LTD. HYDERABAD (PAN AAECS 9626F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N. CHARYA DR RESPONDENT BY : NONE O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) GUNTUR DATED 22.3.2010 AND PERTAINS TO THE ASSESSMENT YEAR 2005-06. 2. THE REVENUE RAISED THE FOLLOWING GROUND: THE CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ON SI GHT DEVELOPMENT EXPENDITURE CANNOT BE EXCLUDED FROM TOT AL TURNOVER FOR THE PURPOSE OF CALCULATION OF DEDUCTIO N U/S 10A. 3. NO ONE APPEARED BEFORE THIS TRIBUNAL ON BEH ALF OF THE ASSESSEE ON THE DATE OF HEARING AND HENCE WE DECIDED TO DISP OSE OF THE CASE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. A CCORDINGLY WE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIALS AVAILABLE ON RECORD. ITA NO.877/HYD/2010 M/S SURABHI SOFTWARE PEOPLE LTD. HYDERABAD 2 2 4. IN OUR OPINION THIS ISSUE WAS SQUARELY COVER ED BY THE ORDER OF THIS TRIBUNAL (CHENNAI BENCH) (AT) IN THE CASE OF DCIT VS. SRA SYSTEMS LTD. (305 ITR 427) WHEREIN IT WAS HELD THAT : IF THE EXPENDITURE INCURRED IN FOREIGN CURRENCY WER E EXCLUDED FROM EXPORT TURNOVER BUT NOT FROM TOTAL TURNOVER T HE BENEFIT GRANTED BY SECTION 10A WOULD BE CONSIDERABLY REDUCE D. THE EXPENDITURE INCURRED IN FOREIGN CURRENCY WHICH WAS EXCLUDED FROM THE EXPORT TURN OVER SHOULD ALSO BE EXCLUDED F ROM THE TOTAL TURNOVER IN ORDER TO PROPERLY WORK OUT AND GRANT OF RELIEF THAT WAS INTENDED BY THIS SECTION. ITEMS WHICH WERE TO BE EXCLUDED FROM THE EXPORT TURNOVER COULD NOT BE INCLUDED IN T HE TOTAL TURNOVER WHILE CALCULATING THE RELIEF U/S 10A OF TH E ACT. 5. RESPECTFULLY FOLLOWING THE SAME WE ARE INCLI NED TO DISMISS THE APPEAL OF THE REVENUE AND DECIDE THE ISSUE IN FAVOU R OF THE ASSESSEE. 5. IN THE RESULT THE APPEAL OF THE REVENUE STAND S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 7. 9.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 7 TH SEPTEMBER 2010 COPY FORWARDED TO: 1. ITO WARD NO.3(2) HYDERABAD 2. M/S SURABHI SOFTWARE PEOPLE LTD. 102 SHILPA AR CADE ROAD NO.3 BANJARA HILLS HYDERABAD-34. 3. CIT(A)- GUNTUR. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP