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TMI Blog2017 (3) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... rts after the date of approval. Since, STPI approval was received in the previous year relevant to A Y 2009-10, therefore, the profits derived from export of computer software during the previous year relevant to AY 2010-11 will be eligible for deduction u/s l0A provided other conditions of sec. l0A are fulfilled by the assessee company. In the instant AY 2010-11 there is no dispute that the other conditions of see lOA are fulfilled by the assessee. We further note that that in the A Y 2011-12 the AO has allowed the assessee’s claim of deduction u/s 10A. Thus AO is not justified in disallowing the claim of deduction u/s 1OA. - Decided in favour of assessee - I.T.A. No. 4084/DEL/2014, C.O. NO. 81/DEL/2015 - - - Dated:- 22-3-2017 - SHR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, the order of AO in disallowing deduction u/s.10A amounting to ₹ 9588414/- is erroneous. Thus the order of Ld. CIT(A) be restored. 2. On the facts and circumstances of the case and in the law, the Ld. AO has erred in disallowing the deduction u/s.10A, by ignoring the fact that the claim of deduction u/s. 10A of the Act has even been allowed by the ITAT for the AY 2009- 10 vide ITA No. 2922/Del/2013 dated 23.12.2014 of Delhi Bench E New Delhi. 4 The brief facts of the case are that the original return of income was filed on 26.9.2010 at an income of ₹ 7500/-. The case was processed and subsequently selected for scrutiny under CASS. Notice u/s. 143(2) dated 25.8.2011 was issued and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant records available with us, especially the orders of the revenue authorities. We find that Ld. CIT(A) has elaborately discussed the issue in dispute vide para no. 4.1 which reads as under:- 4.1 I have carefully considered the submissions of the A/R of the appellant company, the facts of the case as well as the findings of the AO Ground Nos. 1 5 of appeal are general in nature and not pressed for by the appellant. Therefore, no adjudication is called for. Ground nos. 2 3 of appeal are directed against disallowance of deduction claimed u/s. 10A of the I.T. Act. AO observed that the assessee company has begun its manufacturing or production at Noida in 2007, and the certificate of STPI was obtained on 23.9.2008. AO observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, only the profits derived from the export of computer software from and after the date of approval of the STP unit on 23/09/2008 will be eligible for deduction uls lOA. Because in respect of the period prior to the date of approval, during the relevant previous year, even if the profits are derived from export of computer software, the same are not derived from export of computer software produced from STP unit as required uls 1 OA(2)(i)(b). 6.3 Circular No. 1/2005 dt. 06/0112005 of CBDT, New Delhi relating to clarification regarding Tax holiday under section lOB of the Income-tax Act to 100% Export Oriented Undertaking says: 4. The matter has been examined and it is hereby clarified that an undertaking set up in Domestic T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval on 23/09/2008 shall be exempt uls lOA. The appellant has failed to provide details before the A.O. to prove that the profits derived are from software exports after the date of approval. Even before me in the appellate proceedings no details have been furnished to prove that the profits derived are not from export of software before the date of approval but from export of software after the date of approval on 23/0912008. In view of the above, as the appellant has failed to prove that profits derived are from export of software after the date of approval as STP unit, therefore, the A.O. is justified in disallowing the deduction uls lOA. The appeal fails in this ground. The STPI approval was received by the appellant company on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the date of approval of the STP unit on 23/09/2008 will be eligible for deduction u/s lOA. In the A Y 2009-10 the disallowance of deduction uls lOA was confirmed because the assessee failed to provide details before the AO to prove that the profits derived during the A Y 2009-10 are from software exports after the date of approval. Since, STPI approval was received in the previous year relevant to A Y 2009-10, therefore, the profits derived from export of computer software during the previous year relevant to AY 2010-11 will be eligible for deduction u/s lOA provided other conditions of sec. lOA are fulfilled by the assessee company. In the instant AY 2010-11 there is no dispute that the other conditions of see lOA are fulfilled by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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