2020 (5) TMI 23 - AT - Income Tax

Deduction under section 10A - AO reducing telecommunication charges only from the export turnover and not making any corresponding reduction in the total turnover - HELD THAT - As considered the ratio of the judgment of Genpact India vs. ACIT 2011 (11) TMI 119 - DELHI HIGH COURT and we agree with the contention of the Ld. AR that this issue stands covered in favour of the assessee we direct the Assessing Officer to make a corresponding reduction from the total turn-over while computing the deduction u/s 10A - Decided in favour of assessee.

Summary

Issues:
Rectification of Tribunal's order regarding the consideration of assessee's ground No. 4.1 for assessment year 2009-10 under section 10A of the Income Tax Act, 1961.

Analysis:

1. The miscellaneous application sought rectification of the Tribunal's order in ITA No. 2666/Del/2014 for assessment year 2009-10, where ground No. 4.1 of the assessee's appeal was inadvertently not considered.

2. The assessee contended that the ground was covered in their favor by a decision of the Hon'ble Delhi High Court in the case of Genpact India vs. ACIT and argued that no adjustment to the claim of deduction under section 10A would be necessary if the judgment was applied.

3. The assessee's Authorized Representative supported the application, citing objections made before the Dispute Resolution Panel and relevant case laws, requesting the Tribunal to adjudicate ground No. 4.1.

4. On the contrary, the Senior Departmental Representative supported the Tribunal's order, claiming no apparent mistake on record.

5. After hearing both parties and reviewing the records, the Tribunal agreed with the assessee's contention that ground No. 4.1 had not been adjudicated in the previous appeal. The Tribunal acknowledged the mistake and decided to rectify the order to address this ground.

6. Consequently, the Miscellaneous Application was allowed, and the Tribunal recalled the order for the limited purpose of adjudicating ground No. 4.1.

7. Subsequently, the Tribunal considered ground No. 4.1 in the assessee's appeal, referencing relevant case laws and objections raised before the Dispute Resolution Panel. The Tribunal agreed with the Authorized Representative that the issue was covered in favor of the assessee by the judgment of the Hon'ble Delhi High Court in the Genpact India case.

8. Therefore, ground No. 4.1 was allowed, directing the Assessing Officer to make a corresponding reduction from the total turnover while computing the deduction under section 10A of the Income Tax Act, 1961, resulting in the appeal of the assessee being allowed.

9. In conclusion, both the miscellaneous application and ground No. 4.1 were allowed, with the order pronounced in the open court on 12th March, 2020.