2011 (7) TMI 1262 - AT - Income Tax

Summary

Issues involved: Appeal against order of Ld. Commissioner of Income Tax (Appeals) regarding claim of deduction u/s 10A for assessment year 2007-08.

Summary:

Issue 1: Claim of deduction u/s 10A
The Revenue appealed against the Ld. Commissioner of Income Tax (Appeals) order allowing the assessee's appeal for claim of deduction u/s 10A amounting to ` 2,62,19,240/-, contending that the assessee did not fulfill the conditions prescribed in section 10A(2)(i)(a),(b),(c) of the IT Act, 1961. The Assessing Officer had denied the claim as the business was not located in a Free Trade Zone. However, the Ld. Commissioner of Income Tax (Appeals) noted a previous tribunal decision in the assessee's favor for assessment year 2005-06, where it was established that the activities of the assessee fell under the scope of 'computer software' as per the Letter of Permission (LOP) issued by STPL. The Ld. Commissioner of Income Tax (Appeals) upheld the assessee's claim based on the principle of Rules of Consistency, as the matter had been settled in favor of the assessee in the previous assessment year. The tribunal upheld the Ld. Commissioner of Income Tax (Appeals) order, citing the previous decision in the assessee's case and finding no infirmity in the order.

Conclusion:
The appeal filed by the Revenue was dismissed, and the order of the Ld. Commissioner of Income Tax (Appeals) allowing the claim of deduction u/s 10A for the assessee was upheld by the tribunal.