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TMI Blog2018 (3) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... oftware development. It filed its return of income for ay 2009-10 on 30.09.2009 claiming deduction u/s 10A. On scrutiny, the original assessment order was passed u/s 143(3) on 30.12.2011 making disallowances u/s. 40(a)(i) &u/s 14A. Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) granted relief vide an order dated 11.02.2013. Aggrieved against that order, the Revenue filed an appeal before the ITAT and the ITAT vide its order dated 25.02.2015 set aside the order of CIT(A) and remitted the matter back to the AO to decide the issue after considering the facts. Subsequently, the AO issued notice u/s 148 dated 29.03. 2014 and completed the re-assessment u/s 143(3) r.w.s. 147 disallowing thededuction claimed u/s 10A at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1999-00 relevant to the AY 2000- 01." i.e. the appellant being engaged in above activity in the first year of its incorporation, is not being appreciated. 6. The learned Commissioner of Income Tax (Appeals) has ignored the fact that Section 10A eligibility was already considered during regular assessment and reopening the case on the same set of grounds is merely a change in opinion." 3. The AR submitted that the assessee is a private limited company, engaged in the business of software development and provides complete lifecycle services, ranging from new product development, product advancement to product migration, re-engineering, sustenance and support. He invited our attention to the sequence of events since the date of incorporati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 90,996/- Total 5,15,95,371/- The above order was passed after allowing the claim of deduction of Section 10A to the extent of Rs. 7,33,78,813/-. 4 11th Feb, 2013 CIT(A) order was passed deleting the additions made by the Assessing Officer 5 24th June, 2013 Department filed an appeal before Honorable ITAT against the order of CIT(A) 6 29th March,2014 Notice u/s. 148 was issued 7 08th Oct, 2014 Assessing Officer provided reasons for reopening stating that amount of Rs. 7,33,78,813/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 250 Service Charges - Domestic J 590.364 123.900 Service Charges - Export K 5,503.575 0 Bank Interest L 21.856 0 Thus, it is pleaded that the deduction u/s. 10A is to be reckoned beginning with the assessment year in which the undertaking began to manufacture or produce articles or thing or computer software. Having regard to the above facts, the assessee claimed deduction u/s. 10A from assessment year 2000- 01only and hence it was eligible for such claim up to this assessment year i.e., 2009-10, being the 10th consecutive year. Relied on the decision of M/s. North Shore Technologies Pvt. Ltd. vs ITO in ITA No. 5554/Del/2014 dated 07.12.2017 for assessment year 2010-11.Further, the assessee challenged the validity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2000-01. Further, it had obtained import licence on 29th March, 2000 for the purpose of export and consequently commenced its operations of exports. In other words, the assessee ventured into the operation of manufacturing software from assessment year 2000-01 only. Now, let us examine section 10A which is extracted as under : "Special provision in respect of newly established undertakings in free trade zone, etc. 10A. (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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