9911796707
TMI Blog2010 (12) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... f the preceding year - No material has been brought on record by the Revenue to show that in any of the preceding assessment years, claim of deduction u/s 80HHE was allowed to the assessee - Therefore, assessee cannot be held to be ineligible for deduction u/s 10A on that ground - Hence, the crossobjection filed by the assessee is allowed. - ITA No. 4713/Del/2010 - - - Dated:- 31-12-2010 - G.E. Veerabhadrappa, I.P. Bansal, JJ. Stephen George, CIT-DR, for the Appellant C.S. Aggarwal, Sr. Adv., for the Respondent ORDER I.P. Bansal: Appeal is filed by the Revenue and cross-objection is filed by the assessee. They are directed against order of CIT(A) dated 31.8.2010 for AY 2004-05. 2. Ground of appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that from perusal of the above assessment record for AY 2000-01, the assessee company in respect of SSC, Gurgaon unit had claimed deduction u/s 80HHE whereas in AY 2001-02, it claimed deduction u/s 10A for the very first time and subsequently in AY 2002- 03 and 2003-04. The AO referred to the earlier assessment order passed in respect of AY 2001-02 and 2002-03 wherein deduction u/s 10A regarding SSC, Gurgaon unit was disallowed on the basis of which the deduction for AY 2001-02 and 2002-03 u/s 10A to SSC unit was disallowed for AY 2003-04. The assessee vide its submissions dated 15.11.2006 submitted that for AY 1999-2000, SSC had incurred losses which were carried forward. For AY 2000-01, though the assessee had fulfilled all the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 96/Del/2005 in respect of AY 2001-02. It was held by the ITAT that profits and gains arising to SSC unit were eligible for deduction u/s 10A. Learned CIT(A) has also noted that for AY 2004-05 also, similar claim of the assessee has been accepted by relying on the order for AY 2001-02. Learned CIT(A) also found that the facts of the present year are identical as compared to the facts of AY 2001-02 and 2004-05 and no fresh contention or argument has been brought on record by the AO, therefore, he has deleted the addition made on account of disallowance of deduction u/s 10A. Department is aggrieved, hence in appeal. 5. So far as it relates to departmental appeal, learned DR relied upon the order of the AO. As against that, it was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e light of material placed before us. So far as it relates to allowability of deduction u/s 10A of the Act, we found that assessee has placed copy of the Tribunal order dated 27.11.2009 in ITA No.2696/Del/2005 for AY 2001-02 at pages 202 to 210 of the paper book. In that order, the Tribunal has recorded a finding that assessee has fulfilled all the requisite conditions for claiming deduction u/s 10A as discussed by the CIT(A) and assessee was held to be entitled for deduction u/s 10A by the Tribunal vide its earlier order, therefore the ground of the Revenue relating to 10A was rejected. The observations of the Tribunal as contained in the said order in paras 7 to 9 are reproduced below:- "7. We have duly considered the rival contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 2 to sub-section (2) of section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section. On going through this sub-section, it is observed that only the above conditions were required to be satisfied. The case of the appellant company is falling under sub-section 2(i) and not (ii) as held by the A.O. The SSC unit of the appellant company has not been formed by splitting up or the reconstruction of a business already in existence but the SSC unit was in existence and is being assessed from A.Y. 1999-00 itself. It is only that at that time, the SSC unit could not claim the exemption u/s 10A because it was not eligible to claim the deduction and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears, due to any reason and in third year if it wants to claim the exemption and it is satisfying all the conditions laid down u/s 10A, the exemption cannot be acclaimed? No, it cannot be so, the exemption has to be allowed and the only condition prescribed is that as it is available only for ten years from the year in which the industrial undertaking qualifies and, thus, it will be available only for eight years to the concerned industrial undertaking." 8. Ld.D.R. could not point out any circumstance which can persuade us to take a different view than the one taken by the ld. CIT(A). The assessee fulfilled all the requisite conditions of section 10A as discussed by the ld. CIT(A). Thus, taking into consideration the order of ITAT extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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