2015 (11) TMI 1848

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..... ri unit is not treated as an independent, new unit, the said unit should be treated as an extension or part of Adyar unit. Siruseri unit has worked during the previous year and made exports of software - we cannot ignore those operations carried at Siruseri unit. If the Siruseri unit is not treated as independent, according to the argument of the Assessing Officer itself, Siruseri unit becomes part of Adyar unit. If so, the entire turnover of export generated by the assessee should be accounted in the hands of Adyar unit. The entire income arising out of such exports is eligible for deduction under Section 10A in the hands of Adyar unit itself for the reason that Adyar unit as well as Siruseri unit are registered as STPI units. - This Tribu .....

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..... in I.T.A.No. 1408/Mds/2013. In fact, this Tribunal has observed as follows: 16. Regarding the objection of the Assessing Officer on transferring contracts and clientele from Adyar unit to Siruseri unit, we agree with the finding of the Commissioner of Income Tax (Appeals). The assessee-company is running both the units, namely, Adyar unit and Siruseri unit. So also the assessee-company was contemplating the closing down of Adyar unit. Therefore, naturally, the assessee-company, for the purpose of retaining the contracts and clientele, was assigning them to its other working unit. This is nothing but a prudent business decision. This business decision does not detriment the independent status of Siruseri unit. 17. In the facts and .....

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..... re income arising out of such exports is eligible for deduction under Section 10A in the hands of Adyar unit itself for the reason that Adyar unit as well as Siruseri unit are registered as STPI units. Therefore, even if we ignore the separate identity of Siruseri unit, we have to say that the Adyar unit of the assessee remains intact. The entire turnover and income of the assessee from software export have to be attributed in the hands of the Adyar unit. The income is still entitled for deduction under Section 10A. Therefore, these controversies are just academic. 5. In view of the above order of the Co-ordinate Bench of this Tribunal, we do not find any reason to interfere with the order of the CIT(A). By following the order of this .....

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