Commissioner of Income Tax-2 vs Tech Mahindra Ltd.

This Appeal challenges the order passed by the Income Tax Appellate Tribunal, Mumbai dated 30th June 2011 in Income-tax Appeal No. 1176/Mum/2010. The Assessment Year in question is 2004-2005. A return of income was filed declaring total income. The Assessing Officer made various disallowances. The Appeal was filed before the Commissioner of Income-tax (Appeals) against the assessment order dated 26th December 2006. The Appeal was partly allowed. Against such a order, Appeal was filed to the Tribunal which is dismissed by the impugned order. Upon reading of this memo of appeal and all annexures, we are of the view that the expenses incurred in foreign currency on telecommunication charges and providing technical services outside India should not be excluded from the total turnover for the purpose of computation of deduction under Section 10A is an issue answered in favour of the assessee and against the revenue by relying on the judgment of this Court in the case of The Commissioner of Income Tax Vs. Gem Plus Jewellery India Ltd., .

Upon perusal of the Tribunal''s order, we find that the admitted position appears to be that the Tribunal followed its own Special Bench decision and which also was referred to in the case of Gem Plus Jewellery India Ltd. (supra). In these circumstances and merely because the Special Leave Petition against the Division Bench judgment in Gem Plus Jewellery India Ltd. (supra) is pending before the Hon''ble Supreme Court, will not permit us to discard and brush aside the binding precedent. In these circumstances and being bound by the judgment, so also the issue raised covered thereby, that we hold that the present Appeal does not raise any substantial question of law. It is, accordingly, dismissed.