2015 (11) TMI 1848 - AT - Income Tax

Deduction claimed u/s 10A in respect of unit at Siruseri - HELD THAT - An identical issue in respect of the same unit at Siruseri was considered by this Tribunal in assessee s own case for assessment year 2009-10 2013 (11) TMI 1784 - ITAT CHENNAI as held that assessee is having only two STPI units one at Adyar and the other at Siruseri. Both the units are independently registered as a separate STPI unit. Both the units are carrying on software activities and generating income from exports. The assessee is not having any other unit, which is not entitled for the benefits conferred to the STPI units. If Siruseri unit is not treated as an independent, new unit, the said unit should be treated as an extension or part of Adyar unit. Siruseri unit has worked during the previous year and made exports of software - we cannot ignore those operations carried at Siruseri unit. If the Siruseri unit is not treated as independent, according to the argument of the Assessing Officer itself, Siruseri unit becomes part of Adyar unit. If so, the entire turnover of export generated by the assessee should be accounted in the hands of Adyar unit. The entire income arising out of such exports is eligible for deduction under Section 10A in the hands of Adyar unit itself for the reason that Adyar unit as well as Siruseri unit are registered as STPI units. - This Tribunal found that the unit at Siruseri is entitled for deduction u/s 10A of the Act. - Decided against revenue. .

Summary

Issues Involved:
Deduction claimed under section 10A of the Income Tax Act for a unit at Siruseri.

Analysis:
The appeal was directed against the order of the Commissioner of Income-tax (Appeals) for the assessment year 2010-11 regarding the deduction claimed by the assessee under section 10A of the Act for a unit at Siruseri. The Tribunal considered the previous decision in the assessee's case for the assessment year 2009-10, where it was found that the unit at Siruseri was entitled to the deduction under section 10A. The Tribunal noted that the facts were identical to the previous year's case and upheld the order of the Commissioner of Income Tax (Appeals) based on the previous decision. The Tribunal emphasized that the Siruseri unit was an independent STPI unit eligible for the deduction under section 10A, despite objections raised by the Assessing Officer regarding the transfer of contracts and clientele from another unit to Siruseri. The Tribunal dismissed the Revenue's appeal, confirming the order of the CIT(A) based on the previous decision and the independent status of the Siruseri unit as a separate STPI unit eligible for the deduction under section 10A.

In conclusion, the Tribunal found no reason to interfere with the order of the CIT(A) based on the previous decision in the assessee's case for the assessment year 2009-10. The Tribunal confirmed the order of the CIT(A) and dismissed the appeal of the Revenue, stating that the controversies raised were merely technical and that the Siruseri unit was an independent STPI unit eligible for the deduction under section 10A. The Tribunal's decision was in line with the previous ruling and the independent status of the Siruseri unit as a separate entity eligible for the deduction under section 10A of the Income Tax Act.