The Commissioner of Income-tax, Bangalore / The Asst. Commissioner of Income-tax Circle-11(5), Bangalore v. KMG Infotech Pvt. Ltd
[Citation -2020-LL-0817-14]

Citation 2020-LL-0817-14
Appellant Name The Commissioner of Income-tax, Bangalore / The Asst. Commissioner of Income-tax Circle-11(5), Bangalore
Respondent Name KMG Infotech Pvt. Ltd.
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 17/08/2020
Assessment Year 2006-07
Judgment View Judgment
Keyword Tags expenditure incurred • computing deduction • foreign currency • export turnover • total turnover
Bot Summary: Smt.Manasa Ananthan, learned counsel for Mr.T.Suryanarayana, learned counsel for the assessee. This appeal under Section 260-A of the Income Tax Act, 1961 has been preferred by the revenue which was admitted by a Bench of this Court on 11.07.2013 on the following substantial question of law: 3 Whether the Appellate Authorities were correct in holding that the expenditure incurred in foreign currency reduced from export turnover has to be reduced from total turnover for computing deduction under Section 10B of the Act in the absence of any provisions in Section 10B of the Act which requires the concerned expenses to be reduced from total turnover also 3. When the matter was taken up today, learned counsel for the revenue fairly submitted that the substantial question of law has been answered against the revenue by the Supreme Court in COMMISSIONER OF INCOME-TAX, CENTRAL-III Vs. HCL TECHNOLOGIES LTD. 302 CTR 191. In view of the aforesaid enunciation of law, the substantial question of law framed by this Court in this 4 appeal is answered against the revenue and in favour of the assessee.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 17TH DAY OF AUGUST 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.106 OF 2013 BETWEEN: 1. COMMISSIONER OF INCOME-TAX C.R. BUILDING, QUEENS ROAD BANGALORE. 2. ASST. COMMISSIONER OF INCOME-TAX CIRCLE-11(5), C.R. BUILDING QUEENS ROAD, BANGALORE. ... APPELLANTS (BY Mr. M. DILIP, A/W Mr. K.V. ARAVIND, ADVS.) AND: KMG INFOTECH PVT. LTD., UNIT NO.201/202 VANGUARD RISE NO.163 KONENA AGRAHARA, OFF AIRPORT ROAD BANGALORE-560017. ... RESPONDENT (BY Ms. MANASA ANANTHAN, ADV., FOR Mr. T. SURYANARAYANA, ADV.,) --- 2 THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 31-10-2012 PASSED IN ITA NO.280/BANG/2012, FOR ASSESSMENT YEAR 2006-07 PRAYING TO: I. FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. II. ALLOW APPEAL AND SET ASIDE ORDERS PASSED BY ITAT, BENGALURU IN ITA NO.280/BANG/2012 DATED:31-10-2012 AND CONFIRM ORDER OF APPELLATE COMMISSIONER CONFIRMING ORDER PASSED BY ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(5), BANGALORE. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT Mr.K.V.Aravind, learned counsel along with Mr.M.Dilip, learned counsel for revenue. Smt.Manasa Ananthan, learned counsel for Mr.T.Suryanarayana, learned counsel for assessee. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as Act , for short) has been preferred by revenue which was admitted by Bench of this Court on 11.07.2013 on following substantial question of law: 3 Whether Appellate Authorities were correct in holding that expenditure incurred in foreign currency reduced from export turnover has to be reduced from total turnover for computing deduction under Section 10B of Act in absence of any provisions in Section 10B of Act which requires concerned expenses to be reduced from total turnover also? 3. When matter was taken up today, learned counsel for revenue fairly submitted that substantial question of law has been answered against revenue by Supreme Court in COMMISSIONER OF INCOME-TAX, CENTRAL-III Vs. HCL TECHNOLOGIES LTD. (2018) 302 CTR 191 (SC). 4. In view of aforesaid enunciation of law, substantial question of law framed by this Court in this 4 appeal is answered against revenue and in favour of assessee. In result, appeal is dismissed. Sd/- JUDGE Sd/- JUDGE RV Commissioner of Income-tax, Bangalore / Asst. Commissioner of Income-tax Circle-11(5), Bangalore v. KMG Infotech Pvt. Ltd
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