9911796707
TMI Blog2016 (1) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... deleting the disallowance of deduction u/s 10B of the Income Tax Act, 1961 (hereinafter the Act) amounting to Rs. 1,70,59,298/- more specifically, when the assessee did not have approval of prescribed authority as required by CBDT and the green card issued by Chairman Inter Ministerial Standing Committee (IMSC), as software technology park scheme, is merely a concession provided by the Government to the units set up on STP Zones to avail certain facilities on priority basis but does not have any bearing with the allowance and/or disallowance of deduction u/s 10B of the Act. 2.1. During hearing, the ld. DR, Shri Vijay Kumar Soni, advanced his arguments, which are identical to the ground raised. On the other hand, Shri Badresh Doshi, ld. cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h as neural networks, genetic algorithms, bionomic algorithms and other machine learning techniques. As per the assessee, the Managing Director has Doctoral degree in adaptive estimation and neural learning procedures from Indian Institute of Technology, Mumbai and had been responsible for applying several cutting as technologies in the area of risk management/exposure management. The assessee, during the year had turnover of Rs. 3,14,83,809/- and profit of business was Rs. 1,52,56,117/-. The ld Assessing Officer disallowed Rs. 1,70,59,298/-, claimed as deduction u/s 10B of the Act with a remark that the assessee company is not approved by the prescribed authority, as required for eligibility for deduction u/s 10B of the Act and merely indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain facilities on priority basis and was of the view that for claiming deduction u/s 10B, the assessee is expected to obtain approval of CEO of STPI, as required in CBDT instructions dated 18/10/2010. The assessee filed further communication, pursuant to the report of the Assessing Officer. Again, remand report was sought from the Assessing Officer. Admittedly, there is no dispute with respect to fulfillment of other conditions as provided u/s 10B of the Act for claiming such deduction. The stand of the assessee is that automatic route is available to the units, which are having investment less than 100 millions as is the case of the assessee, therefore, the approval by the Director of STPI is sufficient to claim the deduction u/s 10B of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrains to the assessee and further to mitigate the hardship for the development of software, such type of facilities are provided to entrepreneurs, therefore, we find no infirmity in the conclusion drawn in the impugned order. The order of the ld. First Appellate Authority is affirmed, resulting into, dismissal of appeal of the Revenue. 3. So far as, the cross objection (C.O. No.276/Mum/2014, (arising out of ITA No.6525/Mum/ 2012), is concerned, it was not pressed by the ld. counsel for the assessee, therefore, the C.O. of the assessee is dismissed as not pressed. Finally, the appeal of the Revenue and the Cross Objection of the assessee are dismissed. This Order was pronounced in the open court in the presence of ld. representatives f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
