2012 (6) TMI 824 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition u/s 10B of the Income Tax Act, 1961 by CIT(A).

Facts:
- Assessee company filed return declaring total income.
- Providing information technology services to foreign clients.
- Earned dividend income, long-term capital gain, and interest income.
- Claimed deduction u/s 10B.
- Certificate from STPI filed.
- AO found discrepancies and lack of Board approval for 100% export-oriented undertaking.
- AO disallowed claim u/s 10B.

CIT(A) Decision:
- Assessee furnished replies to discrepancies.
- CIT(A) held conditions for u/s 10B fulfilled.
- CIT(A) allowed exemption u/s 10B based on fulfillment of conditions.
- AO's disallowance deleted.

Appellant's Submission:
- Confusion on whether claim made u/s 10A or 10B.
- Claim revised to u/s 10A before AO.
- Form 56F filed for u/s 10A.
- Discrepancies argued as frivolous.
- Delay in submission of Softex forms condoned.
- No discrepancy in FIRC and turnover.
- Claim under u/s 10A should have been granted.

Tribunal Decision:
- Assessee initially claimed u/s 10B, denied by AO.
- CIT(A) granted deduction u/s 10B, not admissible.
- Matter restored to CIT(A) for fresh consideration.
- CIT(A) to determine entitlement to exemption u/s 10A and fulfillment of conditions.
- Assessee to be given opportunity to be heard.

Result:
- Appeal treated as allowed for statistical purpose.