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TMI Blog2012 (2) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) in denying the claim of benefit u/s 10A of the Income-tax Act of Rs.1,65,904/- on the ground that the assessee has not satisfied all the stipulated conditions as per the provisions of sec. 10A of the Act. 3. The brief facts of the case are that the assessee company was set up at Rajajinagar on 1.8.1996 and was engaged in the business of software development and related services. Subsequently, it has set up a unit at Whitefiled and transferred some of the plant and machinery from Rajajinagar Unit. The White filed unit got the STPI status on 8.6.1999. It made the claim of deduction u/s 10A for the first time in the asst. year 2001-02. The claim was denied to the assessee on the ground that the assessee has transferred its plant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular, the assessee is eligible for 10A deduction keeping in mind the period from the time the business commenced in DTA and subsequent conversion to STPI unit, the assessee was entitled to relief u/s 10A of the Income-tax Act. The CIT(A) however confirmed the order of the AO. The assessee is in second appeal before us now. 6. Before us, the assessee has raised various grounds to the effect that - 1) The plant and machinery transferred to the new unit at Whitefield from the old unit at Rajajinagar was below the stipulated percentage of 20% as per the provisions of sec. 10A of the Act. 2) That the assessee was entitled to the benefit of deduction u/s 10A of the Act on the basis of the CBDT Circular to the effect that the business commenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered by 'A' Bench of this Tribunal in the case of ITO Vs. Foresee info. Systems (P) Ltd., in ITA No.3014, 1363 and 1364/B/2005 wherein it has been held that though the benefit is only for 10B units as per the Board Circular, the said Circular is also applicable for the purpose of deduction u/s 10A. He also placed reliance upon the decision of Hon'ble Karnataka High of Court in the case of CIT Vs. Expert Outsource (P) Ltd., reported in 59 DTR 86, wherein after considering the said circular it has been held that the same is applicable for 10A units also. Thus, according to him, the assessee has satisfied the conditions of sec. 10A and also as per the Board Circular is entitled to deduction u/s 10A of the Act. 10. The learned DR on the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ages mentioned in the worksheet but there is no finding of the CIT(A) on these details filed by the assessee. We also find that the assessee has taken a specific ground of appeal before the CIT(A) with regard to the applicability of the Board circular with regard to the claim of deduction u/s 10A of the Income-tax Act in relation to a DTA unit subsequently converted to STPI unit. We find that the CIT(A) has not considered this contention of the assessee also. These submissions made by the assessee though sound convincing enough need to be verified by the AO. In view of the same, we remit the issue of deduction u/s 10A of the Income-tax Act to the Assessing Officer with a direction to verify if the plant and machinery transferred from the Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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