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TMI Blog2015 (9) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... er, has also to be excluded from the total turnover. We are of the view that as of today, law declared by the Hon’ble High Court of Karnataka which is the jurisdictional High Court is binding on us. We therefore hold that the order of CIT(A) does not call for any interference and accordingly the same is confirmed. - Decided against revenue. Rrefusing to admit the additional ground - Held that:- A plain reading of the provisions of section 251 shows that the CIT(Appeals) has plenary powers in disposing of an appeal. His powers are co-terminus with that of the AO. The assessee has placed the business transfer agreement. The CIT(Appeals) has powers to consider the same after confronting it to the Assessing Officer for his comments. He could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(Appeals) was justified in directing the AO to exclude the expenditure incurred in foreign currency such as salaries, travelling and conveyance, sub-contracting, software development charges, communication, etc. from the export turnover, without reducing the same from the total turnover also, while computing deduction u/s. 10B of the Act. 3. According to the AO, as per the definition of export turnover given in clause (iv) to Explanation 2, the expenses incurred for freight expenses attributable to the delivery of the product or software outside India should be reduced from the export turnover. However, the provisions of section 10B do not provide for exclusion of such expenditure from total turnover. In the absence of a definition f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in course of the appeal proceedings and deciding the same on merits. 3. That the learned CIT(A) has erred in not exercising her powers under section 250 of the Income- tax Act, 1961. 4. That the learned CIT(A) has erred in upholding the action of the AO in not granting depreciation on goodwill to the Appellant. 5. That the Appellant craves leave to add to and/or to alter, amend, rescind, modify the grounds herein below or produce further documents before or at the time of hearing of this Appeal. 8. The assessee is a company engaged in the business of development of software with Samsung Electronics Company Ltd., Korea (SECL), the holding company. The assessee took over the business of Samsung India Software Operations (SISO) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igible for depreciation under section 32(1)(ii) of the Act, raised an additional ground for allowability of depreciation on goodwill in the appeal filed before the CIT(Appeals). 13. Before the CIT(A), the assessee submitted that under the provisions of section 253(1) of the Act, the powers of the CIT(Appeals) are coterminus with that of the Assessing Officer and therefore he can do what the Assessing Officer can do. Reliance was placed by the assessee on the decision of Hon ble Supreme Court in CIT v. Kanpur Coal Syndicate (1964) 53 ITR 225) (SC) and Jute Corporation of India Ltd. v. CIT (1991) 187 ITR 688 (SC). 14. The assessee also pointed out that it is only before the AO that the assessee cannot make a claim, which is not supporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s being pursued before the AO wherein the factual basis of the claim will be examined, the assessee s grievance will be adequately redressed. Even on that basis, the CIT(A) refused to admit the additional ground. 16. Aggrieved by the order of CIT(Appeals), the assessee has preferred the present appeal before the Tribunal. 17. We have heard the submissions of the ld. counsel for the assessee, who reiterated the submissions as were made before the CIT(A). 18. The ld. DR relied on the order of CIT(A). 19. We have given a careful consideration to the rival submissions. A plain reading of the provisions of section 251 shows that the CIT(Appeals) has plenary powers in disposing of an appeal. His powers are co-terminus with that of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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