2021 (10) TMI 265 - AT - Income Tax

Disallowing the deduction claimed u/s 10A - AO during the assessment proceedings found that the assessee is not engaged in the activity of export of the website assessee is not eligible for deduction u/s 10A - CIT-A deleted the addition - HELD THAT - No material has been placed on record by the Revenue to demonstrate that the decisions of Tribunal as discussed above while dismissing the appeal of Revenue has been set aside / stayed or overruled by the Higher Judicial Authorities. Before us, Revenue has not placed any material on record to point out any distinguishing feature in the facts of the case for the year under consideration and that of earlier year nor has placed any contrary binding decision in its support.

Summary

Issues:
1. Revenue's appeal against the order of the Learned Commissioner of Income Tax (Appeals)-II, Baroda, regarding exemption u/s.10A.

Analysis:
The Revenue raised several grounds of appeal against the order of the Ld. CIT(A). The primary issue was the deletion of the addition made by the Assessing Officer for a specific amount by disallowing the deduction claimed under section 10A of the Income Tax Act. The assessee, engaged in website development and Call Centre Back End Services, claimed a deduction under section 10A. However, the AO disallowed the deduction as the assessee was deemed ineligible. The Ld. CIT(A) allowed the exemption under section 10A, emphasizing that the appellant's activities were eligible for the claim of exemption as per the provisions and relevant notifications. The Ld. CIT(A) directed the Assessing Officer to grant the relief to the assessee, considering the evidence provided. The Revenue challenged this decision, requesting to restore the issue to the AO for further assessment based on additional evidences. The Tribunal noted that the issue was previously decided in favor of the assessee in a prior case. The Tribunal analyzed the facts, including the survey proceedings, registration certificates, and relevant notifications, concluding that the assessee was eligible for the deduction under section 10A. The Tribunal highlighted the importance of verifying the eligibility of the claim independently and criticized the Ld. CIT's decision to revise the assessment order. As there were no distinguishing features or contrary binding decisions presented by the Revenue, the Tribunal dismissed the Revenue's appeal and upheld the order of the Ld. CIT(A).

In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the Ld. CIT(A)'s decision to allow the exemption u/s.10A for the assessee. The judgment emphasized the importance of independently verifying the eligibility of the claim and criticized the revision of the assessment order by the Ld. CIT. The Tribunal found the assessee eligible for the deduction under section 10A based on the evidence and relevant notifications, ultimately upholding the relief granted to the assessee.