The Deputy Commissioner of Income-tax, Corporate Circle -1(1), Chennai v. M/s. Amec Foster Wheeler India Private Limited, (Formerly Foster Wheeler India P Ltd.)
[Citation -2016-LL-0923-157]

Citation 2016-LL-0923-157
Appellant Name The Deputy Commissioner of Income-tax, Corporate Circle -1(1), Chennai
Respondent Name M/s. Amec Foster Wheeler India Private Limited, (Formerly Foster Wheeler India P Ltd.)
Court ITAT-Chennai
Relevant Act Income-tax
Date of Order 23/09/2016
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags telecommunication expenses • export turnover • total turnover • special bench • it park
Bot Summary: The only issue arises for consideration is exclusion of telecommunication expenses both from export turnover and total turnover for the purpose of computation of deduction under Section 10A of the Act. Shri A.V.Sreekanth, the learned department representative submitted that the assessing officer executed telecommunication expenses from the export turnover. On appeal by the assessee, the CIT(A) by placing reliance on the special bench decision of this Tribunal, directed the assessing officer to exclude the telecommunication expenses from the export turnover also. The learned representative for the assessee submitted that for the purpose of computing eligible deduction under Section 10A, this Tribunal is of the considered opinion that the denominator and numerator shall be of the same factor. Once the telecommunication expenses included in the total turnover, the same shall also be included in the export turnover. The assessing officer included the telecommunication expenses in the export turnover and excluded the same from the total turnover. This Tribunal is of the considered opinion that the CIT(A) has rightly found that the telecommunication expenses has to be excluded both from the export turnover 3 I.T.A. No.1763/Mds/2016 and the total turnover.


IN INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA No. 1763/Mds/2016 Assessment Year : 2010-11 Deputy Commissioner of v. M/s.Amec Foster Wheeler India Income-tax, Private Limited, Corporate Circle -1(1), (Formerly Foster Wheeler India P Ltd.) Chennai 600 034. 6th Floor, Zenith Building, Ascendas IT Park, CSIR Road, Taramani, Chennai 600 113. PAN : AAACF3204C (Appellant) (Respondent) Appellant by : Shri A.V.Sreekanth, JCIT Respondent by : Shri Sriram Seshadri, C.A. Date of Hearing : 01.09.2016 Date of Pronouncement : 23.09.2016 O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of revenue is directed against order of CIT(A) -1, Chennai dated 09.03.2016 and pertains to Assessment Year 2010-11. 2 I.T.A. No.1763/Mds/2016 2. only issue arises for consideration is exclusion of telecommunication expenses both from export turnover and total turnover for purpose of computation of deduction under Section 10A of Act. 3. Shri A.V.Sreekanth, learned department representative submitted that assessing officer executed telecommunication expenses from export turnover. On appeal by assessee, CIT(A) by placing reliance on special bench decision of this Tribunal, directed assessing officer to exclude telecommunication expenses from export turnover also. According to learned representative, revenue has already filed appeal against decision of this Tribunal in case of Sak Soft Limited reported in 313 ITR (AT) 353 (Chennai) and same is pending. Therefore, to keep matter alive, revenue filed appeal before this Tribunal. 4. We heard Shri Sriram Seshadri, learned representative for assessee also. learned representative for assessee submitted that for purpose of computing eligible deduction under Section 10A, this Tribunal is of considered opinion that denominator and numerator shall be of same factor. Once telecommunication expenses included in total turnover, same shall also be included in export turnover. However, assessing officer included telecommunication expenses in export turnover and excluded same from total turnover. Therefore, this Tribunal is of considered opinion that CIT(A) has rightly found that telecommunication expenses has to be excluded both from export turnover 3 I.T.A. No.1763/Mds/2016 and total turnover. Therefore, this Tribunal do not find any reason to interfere with order of CIT(A) and accordingly, same is confirmed. 5. In result, appeal of revenue stands dismissed. Order pronounced on 23rd September, 2016 at Chennai. Sd/- Sd/- (A. Mohan Alankamony) (N.R.S. Ganesan) Accountant Member Judicial Member Chennai, Dated, 23rd September, 2016. sp. Copy to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT, 5. DR 6. GF. Deputy Commissioner of Income-tax, Corporate Circle -1(1), Chennai v. M/s. Amec Foster Wheeler India Private Limited, (Formerly Foster Wheeler India P Ltd.)
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