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2014 (7) TMI 716 - AT - Income TaxAllowability of deduction u/s 10B of the Act Approval for Ratification by Board not taken - The decision in ITO vs. M/s. Secunderabad Software Services P. Ltd. 2014 (7) TMI 546 - ITAT HYDERABAD followed - the assessee as eligible for deduction under S.10B of the Act - the assessee have been registered with the STPI, is entitled for deduction under S.10B of the Act thus, there is no infirmity in the order of the CIT(A) Decided against Revenue.
Issues:
- Allowance of deduction under section 10B of the Income Tax Act, 1961 based on STPI registration without Board of Approvals' ratification. Analysis: The appeal by Revenue challenged the CIT(A)'s order allowing deduction under section 10B for the A.Y. 2004-2005 to the assessee, despite the A.O.'s disallowance due to lack of Board of Approvals' ratification post STPI registration. The Ld. CIT(A) relied on a Coordinate Bench decision involving a similar case to allow the deduction, emphasizing the assessee's registration with STPI as the basis for eligibility. The Revenue contended that the tax effect was minimal and the issue was covered by the Coordinate Bench decision in the case referred earlier. The Tribunal considered the appeal on its merits, noting the recurring nature of the issue and the need to address it. The Ld. CIT(A) had followed the Coordinate Bench decision, extensively discussing the eligibility criteria under section 10B, particularly the necessity of Central Government's Board approval under the Industries (Development and Regulation) Act, 1951. The Tribunal upheld the Ld. CIT(A)'s decision, citing various precedent cases and emphasizing the importance of STPI registration for claiming deduction under section 10B. The Tribunal found no fault in the Ld. CIT(A)'s order, which aligned with the Coordinate Bench's decision, leading to the dismissal of the Revenue's appeal. The judgment confirmed the assessee's entitlement to the deduction under section 10B based on STPI registration, without requiring Board of Approvals' ratification.
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