The Commissioner of Income Tax and Others vs Nous Infosystems Private Ltd.

Vineet Saran, J.—Heard Sri K V Aravind - learned counsel for the appellant and Sri P Dinesh, learned counsel for the assessee.

This appeal has been filed raising the following substantial questions of law:

"1. Whether the Tribunal was correct in holding that the loss of STP unit cannot be set off against the profits of STP unit and only the profits of the STP unit should be taken into account when computing exemption under Section 10A of the Act?

Whether the Tribunal was correct in holding that for the purpose of computing deduction under Section 10A of the Act only total turnover of the business carried on by the undertaking alone should be considered instead of taking into account the total turnover of the entire business carried on by the assessee?

Whether the Appellate Authorities were correct in directing the Assessing Officer to exclude the expenditure incurred in foreign currency from the value of total turnover also for the purpose of computing deduction under Section 10A of the Act?"

It is admitted by the parties that the first question raised in this appeal is covered by the decision rendered by this Court in the case of The Commissioner of Income Tax Ltu. Jss Towers. BSK III Stage Bangalore and The Asst.Commissioner of Income Tax Circle-12(5), C.R. Building, Queens Road, Bangalore and Others Vs. M/s. Yokogawa India Ltd., Plot No. 96, 3rd Cross Electronics City Complex, Hosur Road, Bangalore - 560 100 and Others etc. etc. whereby the question has been answered in favour of the assessee and against the revenue.

The second question has been decided by this Court in The Commissioner of Income Tax v. Sun Microsystems India Pvt. Ltd. (ITA No. 203/2009 disposed of on 6.4.2015) wherein also the question raised has been answered in favour of the assessee and against the revenue.

The third question has been decided by the Judgment of this Court in the case oaf Commissioner of Income Tax Vs. Tata Elxsi Ltd., (2012) 204 TAXMAN 321 wherein also the question has been answered in favour of the assessee and against the revenue.

In such view of the matter, we are of the view that no substantial questions of law remains to be answered by this Court. Sri K V Aravind, learned counsel for the appellant states that in the case of Commissioner of Income Tax v. Yokogawa (supra) and Commissioner of Income-Tax v. TATA Elxsi Ltd. (supra), appeals have been filed before the Apex Court which have been admitted on the questions of law.

In the event, revenue succeeds in the appeals before the Apex Court, then the assessing authority shall pass consequential orders in terms of Section 260(IA) of the Income Tax Act and in accordance with law so as to give effect to the Judgment of the Apex Court.

With the aforesaid observations, the appeal is dismissed.