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2013 (12) TMI 238 - AT - Income TaxExemption u/s 10B The assessee failed to furnish the approval of the Board appointed by the Central Government in exercise of power conferred by section 14 of the Industries - The assessee also failed to submit the ratification by the Development Commissioner as envisaged in the Instruction dated March 9, 2009 - Held that - Following ITO v. Selectsys India P. Ltd. 2013 (10) TMI 1240 - ITAT HYDERABAD - The assessee produced the registration from Software Technology Park of India which was notified by the Ministry of Commerce, Government of India vide Notification No. 33/(RE)/92-97 dated March 22, 1994. The notification states that the Software Technology Park (STP) Scheme is a 100 per cent. export-oriented undertaking scheme The registration certificate was produced only before CIT(A) but not before AO The issue set aside for denovo assessment after consideration of necessary material.
Issues:
- Appeal against the orders of the Commissioner of Income-tax for assessment years 2005-06 and 2008-09. - Claim for deduction under section 10B of the Income-tax Act. - Requirement of ratification by the Board for exemption under section 10B. - Interpretation of the Central Board of Direct Taxes Instruction No. 2 of 2009 dated March 9, 2009. Analysis: Issue 1: Appeal against the Commissioner's orders The appeals filed by the Revenue were directed against the orders of the Commissioner of Income-tax for the assessment years 2005-06 and 2008-09. Since the appeals involved identical issues, they were clubbed and heard together, resulting in a common order for convenience. Issue 2: Claim for deduction under section 10B The assessee, engaged in software development, filed a revised return claiming deduction under section 10B of the Act. The Assessing Officer, while completing the assessment, required approval by the Board for availing the exemption under section 10B. The Commissioner of Income-tax (Appeals) allowed the deduction under section 10B based on the registration with the Software Technology Park as a 100% export-oriented undertaking. Issue 3: Requirement of ratification by the Board The Revenue contended that the assessee failed to produce ratification by the Board as required by the Central Government for exemption under section 10B. The Tribunal noted that the issue was similar to a previous case and remitted the matter back to the Assessing Officer for a fresh decision based on the material provided by the assessee. Issue 4: Interpretation of CBDT Instruction The Revenue argued that the Commissioner of Income-tax (Appeals) should have considered the Central Board of Direct Taxes Instruction No. 2 of 2009 dated March 9, 2009. The Tribunal, following precedent, set aside the Commissioner's order and directed a fresh decision by the Assessing Officer based on the material presented by the assessee. In conclusion, the Tribunal allowed the appeals of the Revenue for statistical purposes, remitting the issues back to the Assessing Officer for fresh consideration in line with the material provided by the assessee. The judgment emphasized the importance of complying with the requirements for claiming deductions under section 10B and the need for proper documentation and approvals as per the relevant provisions of the Income-tax Act.
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