The Commissioner of Income-tax–II, Hyderabad v. Virtusa (India) Pvt. Ltd - 2015-LL-0121-83

Citation	2015-LL-0121-83
Appellant Name	The Commissioner of Income-tax–II, Hyderabad
Respondent Name	Virtusa (India) Pvt. Ltd.
Court	HIGH COURT OF HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Relevant Act	Income-tax
Date of Order	21/01/2015
Assessment Year	2006-07
Judgment	View Judgment
Keyword Tags	computation of deduction • eligible business • export turnover
Bot Summary:	01.2015 Between: The Commissioner of Income Tax II, Hyderabad. Appellant And M/s. Virtusa Pvt. Ltd., Hyderabad.Respondent THE HON BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 747 of 2014 Judgment: This appeal is sought to be preferred and admitted against the order of the learned Tribunal dated 24.8.2012 in relation to the assessment year 2006-2007 on the following suggested questions of law: 1. In the facts and circumstances of the case, whether the Hon ble Tribunal is justified in law in not upholding the order of the Assessing Officer excluding the communication charges and insurance charges from Export Turnover and directing the Assessing Officer to consider the Principle of Parity in deciding the issue 2. In the facts and circumstances of the case, whether the Hon ble Tribunal is justified in not upholding the order of the Assessing Officer excluding the Reimbursed expenses from Export Turnover and directing the Assessing Officer to consider the Principle of Parity in deciding the issue 3. In the facts and circumstances of the case, whether the Hon ble Tribunal is correct in law in upholding the order of the learned Commissioner of Income Tax directing the Assessing Officer to consider the statutory disallowances under Section 40A(3), Section 40A(7) and Section 43B of the Act as eligible business profits for computation of deduction under Section 10A of the Act without appreciating that the statutory disallowances are not profits earned by the Respondent assessee We have heard Mr. B.Narasimha Sarma, learned counsel appearing for the Revenue and have gone through the impugned judgment and order of the learned Tribunal. It appears, the learned Tribunal while deciding the appeal on the points agitated before us, remanded the matter for hearing on the issue of exclusion of communication charges and insurance from the total turn over. No decision has been rendered on merits and there is no point of admitting the appeal on the aforesaid issue. As far as the other issue is concerned, namely, the statutory disallowances under Sections 40A(3), 40A(7) and 43-B of the Act in connection with the deduction under Section 10-A, we find that the learned Tribunal decided the issue in favour of the assessee, following its earlier judgments in the case of Planet Online Pvt. Ltd., in I.T.A. No. 1016/Hyd/07 and Zawata India Pvt. Ltd., in I.T.A. No. 1100/Hyd/2009.

THE HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 747 of 2014 DATED:21.01.2015 Between: Commissioner of Income Tax II, Hyderabad. Appellant And M/s. Virtusa (India) Pvt. Ltd., Hyderabad. .Respondent HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 747 of 2014 Judgment: (per Hon ble Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against order of learned Tribunal dated 24.8.2012 in relation to assessment year 2006-2007 on following suggested questions of law: 1. In facts and circumstances of case, whether Hon ble Tribunal (ITAT) is justified in law in not upholding order of Assessing Officer excluding communication charges and insurance charges from Export Turnover and directing Assessing Officer to consider Principle of Parity in deciding issue ? 2. In facts and circumstances of case, whether Hon ble Tribunal (ITAT) is justified in not upholding order of Assessing Officer excluding Reimbursed expenses from Export Turnover and directing Assessing Officer to consider Principle of Parity in deciding issue ? 3. In facts and circumstances of case, whether Hon ble Tribunal (ITAT) is correct in law in upholding order of learned Commissioner of Income Tax (Appeals) directing Assessing Officer to consider statutory disallowances under Section 40A(3), Section 40A(7) and Section 43B of Act as eligible business profits for computation of deduction under Section 10A of Act without appreciating that statutory disallowances are not profits earned by Respondent assessee ? We have heard Mr. B.Narasimha Sarma, learned counsel appearing for Revenue and have gone through impugned judgment and order of learned Tribunal. It appears, learned Tribunal while deciding appeal on points agitated before us, remanded matter for hearing on issue of exclusion of communication charges and insurance from total turn over. So, no decision has been rendered on merits and there is no point of admitting appeal on aforesaid issue. We have noted facts narrated in impugned order. There is no allegation that matter was remanded on absurd ground. As far as other issue is concerned, namely, statutory disallowances under Sections 40A(3), 40A(7) and 43-B of Act in connection with deduction under Section 10-A, we find that learned Tribunal decided issue in favour of assessee, following its earlier judgments in case of Planet Online Pvt. Ltd., in I.T.A. No. 1016/Hyd/07 and Zawata India Pvt. Ltd., in I.T.A. No. 1100/Hyd/2009. It was not argued before us that earlier decisions of learned Tribunal have been upset or any appeals have been filed before this Court against those decisions. Therefore, we do not find any element of law for admitting appeal. appeal is accordingly dismissed. Consequently, miscellaneous applications, if any pending, shall also stand closed. No order as to costs. K.J. SENGUPTA, CJ SANJAY KUMAR, J 21st January, 2015 Pnb Commissioner of Income-taxII, Hyderabad v. Virtusa (India) Pvt. Ltd

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