COMMISSIONER OF INCOME TAX Vs. GENPACT INDIA

JUDGEMENT

(1.) THESE appeals under S. 260A of the IT Act, 1961 (hereinafter referred to as the said Act) have been preferred by the Revenue in respect of the Tribunal's orders dt. 13th Oct., 2009 and 4th March, 2011 in ITA Nos. 2170/Del/2009 and 5556/Del/2010, respectively. Both these appeals have been admitted and the common question arising in these appeals is as under :

(2.) IT Appeal No. 1519 of 2010 as well as IT Appeal No. 1076 of 2011, are both in respect of the asst. yr. 2004-05. IT Appeal No. 1519 of 2010 arises out of the order passed by the CIT in exercise of his powers under S. 263 of the said Act. The AO in the original assessment had not included the communication expenses in the figure of total turnover for computing the eligible deduction under S. 10A of the said Act nor any inquiry to that effect had been made by the AO. Consequently, the CIT, in exercise of his powers under S. 263 of the said Act directed the AO to reassess the income of the assessee after making the adjustments, as directed, by including the communication expenses in the figure of total turnover for the purposes of computing the eligible deduction under S. 10A of the said Act. The assessee had filed the appeal being ITA No. 2170/Del/2009 before the Tribunal in respect of the said order passed by the CIT dt. 12th March, 2009 under S. 263 of the said Act.

(3.) BY that time, the Tribunal had disposed of the assessee's appeal (ITA No. 2170/Del/2009) by virtue of its order dt. 13th Oct., 2009. The Tribunal, while it upheld the exercise of power under S. 263 of the said Act by the CIT, decided that the communication expenses had to be excluded from the total turnover for the purposes of computing the deduction under S. 10A of the said Act.