2011 (5) TMI 943 - AT - Income Tax

Summary

Issues involved: Assessment of deduction u/s 10B of the Income Tax Act for an assessee engaged in export activities.

Summary:
The Appellate Tribunal ITAT DELHI heard an appeal for assessment year 2007-08 where the assessee claimed a deduction of `90,92,721 u/s 10B of the Act. The Assessing Officer (AO) disallowed the claim based on a CBDT Clarification stating that the exemption for units in Software Technology Park is granted u/s 10A, not u/s 10B. The CIT(A) upheld the disallowance, leading to the appeal by the assessee.

The assessee contended that previous Tribunal orders favored their claim, citing discrepancies between the CBDT Clarification and relevant Press Notes. The Department, however, supported the impugned order, highlighting the timing of the Clarification post the Tribunal orders.

After considering the arguments and evidence, the Tribunal found merit in the assessee's case. Despite the CBDT Clarification, the Press Notes and additional communication supported the assessee's entitlement to deduction u/s 10B. Consequently, the appeal was allowed, and the assessee's claim for deduction u/s 10B was upheld.

The judgment was pronounced on 03.05.2011 by the Tribunal.