2012 (12) TMI 77 - HC - Income Tax

Deduction under section 10A of the Income Tax Act - 100% Export oriented unit for Software Held that - There was a change of name, which is also duly approved by the ROC - Copy of declaration of Software export through data communication link with the company in SOFTEX from the Software Technology Park of India along with purchase orders made by the customers, confirmation of the same, invoice raised to clients and foreign inward remittance certificates from banks confirming receipt of money in the form of foreign exchange were furnished. Certificate regarding qualification of both the Directors was also furnished. The assessee company has made genuine exports, earned foreign exchange, which is not doubted by any other authorities except the A.O - exemption under section 10A of the Income Tax Act allowed In favor of assessee

Summary

Issues: Appeal against the Tribunal's judgment allowing deduction under section 10A of the Income Tax Act, 1961.

Analysis:
The issue in this case revolves around the deduction claimed under section 10A of the Income Tax Act, 1961. The Assessing Officer initially rejected the claim, citing reasons why the conditions were not met, leading the assessee to appeal the decision. The CIT(A) later overturned the Assessing Officer's order, stating that all conditions had been fulfilled. Subsequently, the Revenue challenged this decision before the Tribunal, which upheld the CIT(A)'s decision, prompting the Revenue to file the present appeal.

The central question before the High Court was whether the assessee had indeed satisfied the necessary conditions for claiming the deduction under section 10A of the Act. The CIT(A) extensively reviewed the evidence on record and concluded that the assessee had met all requirements. The Tribunal supported this decision, emphasizing the various supporting documents provided by the assessee, such as export declarations, purchase orders, invoices, and certificates confirming foreign exchange earnings. The Tribunal concurred with the CIT(A)'s reasoning and directed the Assessing Officer to allow the exemption under section 10A.

Upon careful consideration of the facts and documents presented, the High Court found that the issue primarily involved the assessment of facts and evidence. Both the CIT(A) and the Tribunal had independently determined that all necessary conditions for the deduction were satisfied. Consequently, the High Court concluded that there was no legal question at hand and dismissed the Tax Appeal filed by the Revenue.