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TMI Blog2019 (6) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the units are same, the products and services are also same and the infrastructure is also similar - HELD THAT:- CIT(A) after going through the entire factual matrix, held that the assessee has furnished sufficient material to show that there is a separate and distinct STPI formed which has engaged itself in export and development of software involving substantial investment in infrastructure including computers and software and employees and the Assessing Officer's conclusion that there is a splitting up of the existing unit is not correct and such finding has been given without analysing and appreciating all the relevant facts. CIT(A) proceeds to elaborately take note of the factual position, the profit and loss account, the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.2007 for the assessment year 2002-03. 2.The above Tax Case Appeals have been admitted on the following substantial questions of law:- (i) Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to the benefit of Section 10A for its STPI unit even though the products are the same as produced in the other units, the same and even the employees are common? (ii) Whether in the facts and circumstances of the case, the Tribunal was right in holding that the expenditure incurred in foreign exchange which have even specifically excluded from export turnover by explanation 2(iv) to Section 10A would also not form part of the total turnover for the purpose of Section 10A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of exemption under Section 10A of the Act for its STPI unit. The Assessing Officer while computing the assessment vide orders dated 31.03.2004 and 31.03.2005 respectively disallowed the claim for exemption in its entirety. The sum and substance of the conclusion arrived at by the Assessing Officer is that even after the formation of STPI unit, physically it was not possible to distinguish between STPI and non-STPI as the employees with both the units are same, the products and services are also same and the infrastructure is also similar. Thus, the Assessing Officer concluded that the intention of introducing Section 10A of the Act, will be defeated if such kind of arrangements can be allowed to avail the benefit of exemption. 8. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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