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Issues involved: Appeal against order of CIT(Appeals) u/s 143(3) for AY 2001-02 - Relief u/s 10A vs. sec. 80-HHE(5) - Fulfillment of conditions for deduction u/s 10A.
Relief under sec. 10A vs. sec. 80-HHE(5): The appeal pertained to the allowance of relief u/s 10A while ignoring sec. 80-HHE(5) provisions, which disallow deduction if claimed for the same profits under any other provision. The ITAT analyzed the provisions and held that if deduction is claimed for eligible profits under sec. 80-HHE, no further deduction can be claimed for the same or any other assessment year under any other provision. The ITAT referred to a previous case to support this interpretation, emphasizing that the restriction aims to prevent double deduction. Fulfillment of conditions for deduction u/s 10A: The case involved a Private Limited Company with an STPI unit engaged in software export. The company had claimed deduction u/s 80-HHE for AYs 1998-99 to 2000-01 and subsequently claimed exemption u/s 10A for AY 2001-02, meeting all conditions under sec. 10A(2)(b). The Assessing Officer disallowed the claim, contending that as deduction was already claimed u/s 80-HHC, sec. 80-HHE(5) bars further deduction u/s 10A. However, the CIT(Appeals) found in favor of the assessee, stating that all conditions for sec. 10A were met, and no non-compliance was proven by the revenue department. Conclusion: The ITAT upheld the CIT(Appeals) decision, ruling that the assessee fulfilled all conditions for exemption u/s 10A, hence entitled to the claimed deduction. The appeal of the revenue was dismissed, affirming the order of the CIT(Appeals) in favor of the assessee.
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