Income Tax Appellate Tribunal Bangalore Sasken Technologies Limited, ... vs Assistant Commissioner Of Income Tax, ... on 16 May, 2023 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES "B", BANGALORE Before Shri George George K, JM & Shri Laxmi Prasad Sahu, AM IT(TP)A No.150/Bang/2023 : Asst.Year 20102011 M/s.Sasken Technologies Limited The Assistant Commissioner #139/25, Amarjyothi Layout v. of Incometax, Circle 6(1)(1) Ring Road, Domlur Bangalore. Bangalore 560 071. PAN : AAECS6424R.. (Appellant) (Respondent) Appellant by : Sri.Padam Chand Kincha, CA Respondent by : Sri.Sunil Kumar Singh, CITDR Date of Date of Hearing : 03.05.2023 Pronouncement : 16.05.2023 ORDER Per George George K, JM : This appeal at the instance of the assessee is directed against final assessment order dated 25.01.2023 passed u/s 143(3) r.w.s. 144C(13) r.w.s. 263 of the Incometax Act, 1961 ("the Act" for short). The relevant assessment year is 2010 2011. 2. The brief facts of the case are as follows: The assessee is a company engaged in the business of providing telecommunication, software services and solutions to various entities. For the assessment year 20102011, the return of income was filed on 11.10.2010 declaring total income of Rs.42,59,22,566 and book profit of Rs.66,46,62,271. The assessment was selected for scrutiny and mandatory notices u/s 143(2) and 142(1) of the Act were 2 IT(TP)A No.150/Bang/2023. M/s.Sasken Technologies Limited. issued and served on the assessee. The final assessment order u/s 143(3) r.w.s. 144C(13) of the Act was passed on 29.01.2015 assessing the total income of Rs.62,98,27,338. In the said final assessment order, following additions / disallowances were made: (i) Excess deduction u/s 10A / 10AA Rs.16,43,07,338 (ii) Disallowance u/s 14A Rs. 1,28,29,387 (iii) Transfer pricing adjustment Rs. 2,67,68,300 3. Aggrieved by the final assessment order, the assessee as well as the Revenue filed appeals before the Tribunal. The Tribunal vide order dated 02.10.2016 in IT(TP)A Nos.397 and 376/Bang/2015, had set aside the issues to the files of the AO/TPO. The directions issued by the Tribunal for redoing the assessment are as follows: a) Transfer pricing adjustment: The ITAT directed to decide the issue afresh in light of the decisions in the case of Sami Labs Ltd and Indegene Lifesystems P Ltd. b) Disallowance under section 14A: The ITAT directed the AO to decide the issue afresh. c) Disallowance under section 10A/10AA:  Eligibility of Royalty Income for deduction under section 10A/10AA: The ITAT directed the AO to decide afresh on the basis of Jurisdictional High Court Cases in Wipro and Motorola India Electronics P Ltd  Nonreduction of foreign expenses from export turnover: The ITAT directed the AO to decide afresh on the basis of Jurisdictional High Court decisions in Motor Industries Co. Ltd and Mphasis Ltd. d) Allowance of Short Credit of TDS: The ITAT directed to verify and grant TDS credit as claimed in the return of income. 3 IT(TP)A No.150/Bang/2023. M/s.Sasken Technologies Limited. 4. Pursuant to the remand by the Tribunal, the A.O. passed order on 13.11.2017, providing substantial relief to the assessee. 5. In the meanwhile, the Revenue filed appeal before the Hon'ble High Court u/s 260A of the Act against the Tribunal order in IT(TP)A No.397 & 396/Bang/2015 dated 21.10.2016. As against the assessee's appeal in IT(TP) A No. 397/Bang/2015 before the Tribunal, the revenue filed an appeal to Karnataka High Court which was numbered as ITA No. 264 of 2017. The substantial questions of law raised in this appeal was as under: "(i) Whether on the facts and in the circumstances of the case, the Tribunal is right in law giving relief to assessee in respect of computation of deduction under section 10A by relying upon the decision of this Hon'ble Court in case of CIT v Tata Elxsi when said judgment has been challenged before Apex Court? (ii) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside the addition of Rs. 16,43,07,085