9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 257 - AT - Income TaxAllowability of claim of deduction u/s 10A of the Act Held that - The decision in ITO, W-10(1), Hyderabad Versus M/s. Intrack Inc Ranigunj Circle, Secunderabad 2014 (2) TMI 884 - ITAT HYDERABAD followed the assessee was not eligible for deduction under section 10B and therefore, made an alternate claim for deduction under section 10A for which it was eligible - Assessee also filed relevant auditor certificate and complied with the provisions - AO should not have denied the claim when assessee is otherwise eligible - assessee is eligible for deduction under section 10A, has complied with the requirements of filing Form 50F before the A.O. during the assessment thus, the AO is directed to allow the deduction under section 10A after verifying the quantification of the amount and compliance with the provisions of Law and after giving a reasonable opportunity of being heard to the assessee as directed by the CIT(A) Decided against Revenue.
Issues:
Revenue appeal against CIT(A)'s order allowing deduction under section 10A for A.Y. 2010-2011. Analysis: The issue in this case revolves around the eligibility of the assessee for deduction under section 10A of the Income Tax Act. The assessee, a 100% Export Oriented Unit (EOU) registered with the Software Technology Park of India (STPI), filed a return of income claiming exemption under section 10B. However, the Assessing Officer (A.O.) disallowed the claim under section 10B due to non-compliance with certain requirements. Subsequently, the assessee claimed deduction under section 10A during the assessment proceedings, supported by an auditor's certificate in Form 50F. The A.O. rejected this claim citing the failure to file a revised return and following a precedent set by the Supreme Court in a previous case. The CIT(A), considering the ITAT's decision for the earlier year, held that the assessee had fulfilled the conditions for claiming deduction under section 10A. The CIT(A) emphasized the importance of filing Form 56F, which the assessee submitted during the assessment proceedings, and cited judicial precedents supporting the acceptance of necessary certificates before the completion of assessments for claiming deductions under Chapter-VIA. The CIT(A) directed the A.O. to examine the claim of the assessee under section 10A. Continuing the analysis, the CIT(A) further discussed various cases where claims were made before the A.O. and concluded that the assessee, being a 100% EOU approved by STPI, was eligible for deduction under section 10A despite the claim not being made in the original return but during the assessment proceedings. The CIT(A) distinguished the facts of the present case from the precedent relied upon by the A.O. and directed the A.O. to grant the deduction under section 10A. The Revenue appealed the decision, contending that the assessee was not eligible for deduction under section 10A. However, the Tribunal upheld the CIT(A)'s order, stating that the assessee was eligible for deduction under section 10A as it had made an alternate claim supported by relevant documents and had complied with the provisions. The Tribunal directed the A.O. to allow the deduction under section 10A after verifying the amount and ensuring compliance with the law, providing a reasonable opportunity for the assessee to be heard. In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s order allowing the deduction under section 10A for the assessee for the relevant assessment year.
|
