Principal Commissioner of Income-tax-7, Bengaluru / The Dy. Commissioner of Income-tax, Circle-7(1)(1), Bengaluru v. Tata Elxsi Ltd
[Citation -2020-LL-0225-59]
Citation | 2020-LL-0225-59 |
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Appellant Name | Principal Commissioner of Income-tax-7, Bengaluru / The Dy. Commissioner of Income-tax, Circle-7(1)(1), Bengaluru |
Respondent Name | Tata Elxsi Ltd. |
Court | HIGH COURT OF KARNATAKA |
Relevant Act | Income-tax |
Date of Order | 25/02/2020 |
Assessment Year | 2011-12 |
Judgment | View Judgment |
Keyword Tags | eligible for exemption • export of software • foreign currency • export turnover • rental income • eligible unit • book profits • set off loss • sale of scrap • insurance expenses • telecommunication expenses |
Bot Summary: | The assessee filed the return of income for the Assessment Year 2010-11 on 30.09.2010 declaring NIL income under normal provisions and book profits under Section 115JB of the Act of Rs.7,77,33,533/-. Against the said return, the Assessing Officer passed an order 3 under Section 143(3) of the Act at total income of Rs.18,05,19,790/- The Assessing Officer allowed exemption under Section 10A in respect of STPI, Bangalore Unit after set off loss of Rs.4,92,52,645/- in respect of 10A eligible unit of Bombay and other income in the form of sales of scrap of Rs.62,65,142/- was excluded from the business profits for the purpose of computing exemption under Section 10A of the Act. The Assessing Officer made addition of Rs.18,65,13,852/- and brought to tax rental income under other sources. Being aggrieved, an appeal was preferred before the Commissioner of Income Tax who 4 vide impugned order allowed the claim of other income. The appellate authority held the other income of Rs.62,65,141/- is part of business profits eligible for exemption under Section 10A of the Act. The Commissioner of Income Tax held that an amount of Rs.27,68,91,455/- was not realized within prescribed time and therefore, the same should be considered as export turnover for the current year. Being aggrieved, the assessee as well as the revenue filed appeals before the Income Tax Appellate Tribunal. |