9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 445 - AT - Income TaxDeduction under section 10A - alternative claim made by the assessee for deduction Held that - Issue involved in the present case is squarely covered by the decision in the case of M/s. Vivera IT Applications Consulting (P) Ltd., Hyderabad vs. ITO, 2015 (6) TMI 435 - ITAT HYDERABAD wherein similar alternative claim made by the assessee for deduction under section 10A instead of deduction under section 10B for the first time before him was not entertained by the Ld. CIT(A) on the ground that the required report of the auditor in Form 56F for claiming deduction under section 10A had not been submitted by the assessee. Before the Tribunal, the assessee however submitted the report of the auditor in Form 56F and taking the same on record, the Tribunal restored the issue to the file of the A.O. with a direction to consider and decide the alternative claim of the assessee for deduction under section 10A relying on the decision of Coordinate Bench of the Tribunal in the case of Cloud Softek 2014 (2) TMI 742 - ITAT HYDERABAD wherein it was held that if the assessee is held to be not entitled to deduction under section 10B, his alternative claim for deduction under section 10A should be considered. The ratio of these decisions of the Tribunal, in our opinion, is clearly applicable in the present cases and respectfully following the same, we uphold the impugned order of the Ld. CIT(A) directing the A.O. to consider the alternative claim of the assessee for deduction under section 10A for both the years under consideration in accordance with law on merit. - Decided against revenue.
Issues:
1. Appeal against the Order of the Ld. CIT(A)-VI directing consideration of alternative claim of deduction under section 10A of the I.T. Act, 1961. 2. Entitlement for deduction under section 10B disallowed by A.O. due to lack of recognition as 100% Export Oriented Undertaking (EOU). 3. Additional ground filed by assessee for deduction under section 10A before Ld. CIT(A) for both assessment years. 4. Disagreement between A.O. and Ld. CIT(A) regarding the new alternative claim under section 10A. 5. Application of Tribunal's decision in a similar case for considering alternative claim under section 10A. Analysis: 1. The appeals were filed by the Revenue against the Order of the Ld. CIT(A)-VI directing the consideration of the assessee's alternative claim for deduction under section 10A of the I.T. Act, 1961. The assessee, a partnership firm engaged in software development, had filed returns claiming deductions under section 10B for A.Y. 2010-2011 and 2011-2012. The A.O. disallowed the claim as the firm was not recognized as a 100% EOU by the Central Government-appointed Board, as required by law. 2. The A.O. based the disallowance on the grounds that the firm's approval under the STP Scheme did not equate to recognition as a 100% EOU under section 10B. The A.O. emphasized the distinction between STP units and EOUs approved by the Central Government. The A.O. referred to CBDT's Instruction and the High Court's decision to support the disallowance of the deduction under section 10B for the firm. 3. The assessee filed additional grounds before the Ld. CIT(A) for both assessment years, claiming entitlement to deduction under section 10A. The A.O. objected to this new claim, arguing that it should have been made through a revised return. However, the Ld. CIT(A) admitted the additional ground and directed the A.O. to consider the alternative claim under section 10A, supported by Form 56F certificates, for both years. 4. The Tribunal observed that a similar issue was addressed in a previous case, where the Ld. CIT(A) did not entertain an alternative claim under section 10A due to missing Form 56F. However, upon submission of the form, the Tribunal directed the A.O. to consider the alternative claim. Relying on this precedent, the Tribunal upheld the Ld. CIT(A)'s order to consider the assessee's claim for deduction under section 10A for both years. 5. The Tribunal dismissed the Revenue's appeals, citing the applicability of previous decisions and directing the A.O. to evaluate the alternative claim for deduction under section 10A in accordance with the law. The judgment was pronounced on 27.05.2015 by the Appellate Tribunal ITAT Hyderabad, with detailed references to legal provisions and precedents to support the decision.
|
