9911796707
TMI Blog2021 (10) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(A) considered and allowed. In our opinion, the order passed by the Ld. CIT(A) is not correct. Therefore, we set aside the order passed by the Ld. CIT(A) and remit the issue back to the A.O to consider the eligibility of the assessee for deduction u/s. 10A of the Act afresh, denovo in accordance with law. Hence, the appeal filed by the Revenue is allowed for statistical purposes. - ITA Nos.1169 & 1320/Chny/2019 - - - Dated:- 8-10-2021 - Shri V. Durga Rao, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Mr. S. Sridhar, Advocate For the Respondent : Mr. ARV Sreenivasan, Addl. CIT ORDER PER V. DURGA RAO, JUDICIAL MEMBER: These two appeals filed by the Revenue are directed against the orders of the learned Commissioner of Income Tax (Appeals)-15, Chennai in I.T.A Nos.330 329/2016-17/CIT(A)-15 dated 27.08.2018 relevant to the Assessment Years 2010-11 2009-10 respectively. 2. There is a delay of 155 days in filing the appeal in ITA No.1320/Chny/2019 for Assessment Year 2009-10 and delay of 147 days in ITA No.1169/Chny/2019 for Assessment Year 2010-11 respectively, for which, the Revenue filed a petition for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue to the AO to examine the claim of deduction u/s 10B. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the Ld.ClT(A) be set aside and that of the Assessing Officer be restored. 7. The brief facts of the case are that the assessee is in the business of insurance claim processing, filed its return of income admitting Nil income after claiming deduction u/s. 10B of the Income Tax Act, 1961 (hereinafter as the Act ). The case of the assessee was selected for scrutiny and on 07.10.2011 the assessment was completed u/s. 143(3) of the Act by accepting return of income filed by the assessee. Subsequently, the case of the assessee was reopened u/s. 147 of the Act by issuing a notice u/s. 148 of the Act on the ground that the assessee does not have an approval granted by Development Commissioner, Special Economic Zone for the purpose of eligibility of deduction u/s. 10B of the Act and assessment was completed u/s. 143(3) r/w s. 147 of the Act dated 28.12.2016. In the assessment order, the A.O has noted as under: I have gone through the submissions of the assessees/ Authorized Representative and material placed on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5.3.1. The common issue involved in both the AYs, 2009-10 and 2010-11, is the AO's denial of the appellant's claim of deduction u/s 1QB and 10A. Initially, the appellant had claimed u/s 10B of the IT Act. By observing that the appellant did not have approval granted by the Development Commissioner, Special Economic Zone, the AO denied the appellant's claim of deduction u/s 10B. Although, the appellant claimed deduction u/s 10A during the assessment proceedings, the AO rejected its claim with an observation that it was an after thought and corresponding details were not filed. 5.3.2. Before the CIT(A), the appellant's AR has reiterated the appellant's main plea of deduction u/s 10B. However, the AR has admitted that the approval from the competent authority for claiming deduction u/s 10 is still pending. Therefore, I am convinced that the appellant is not entitled to claim deduction u/s. 10B. Therefore, the appellant s main plea of deduction u/s. 10B is rejected. 5.3.3. Now, coming to the appellant's .alternate plea that it is eligible for deduction u/s 10A, I have perused the following particulars filed by the appellant's AR to substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer in the light of the provisions of Section 10A of the Act, in case the assessee is not eligible under Section 10B of the Act. Accordingly, the orders of the lower authorities are set aside and the entire issue is remitted back, to the file of the Assessing Officer. The Assessing Officer shall re-examine the issue afresh and find out whether the Board constituted by Government of India under Section 14 of the Industries (Development Regulation) Act, 1951 has approved the assesses as 100% export oriented unit. In case such approval was not granted, the Assessing Officer shall also examine the claim of the assesses under Section 10A of the Act on merit, in accordance with law, after giving a reasonable opportunity to the assessee . 5.3.6. The Hon'ble ITAT's decision in the above mentioned case makes it clear that even if an assessee is not eligible for deduction u/s 10B, its claim of deduction u/s 10A can be examined by the Assessing Officer. Although, all the relevant details were filed before the AO, the AO has not controverted the appellant's eligibility to claim deduction u/s 10A. After perusal of the supporting documents, I am of the considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 10A also no documents are filed. 15. On appeal, the Ld. CIT(A) has granted s. 10A of the Act by observing that the assessee has substantiated the statutory conditions prescribed u/s. 10A of the Act are fulfilled. In view of the above facts and circumstances of the case, we find that when the assessee has not filed any details in respect of the claim of deduction u/s. 10A of the Act before the A.O and the necessary documents which are filed only before Ld. CIT(A), the Ld. CIT(A) ought to have been called the remand report and thereafter, the eligibility for the assessee u/s. 10A of the Act has to be considered. The Ld. CIT(A) without calling remand report and without giving an opportunity to the A.O a claim which is substantiated first time before the Ld. CIT(A) considered and allowed. In our opinion, the order passed by the Ld. CIT(A) is not correct. Therefore, we set aside the order passed by the Ld. CIT(A) and remit the issue back to the A.O to consider the eligibility of the assessee for deduction u/s. 10A of the Act afresh, denovo in accordance with law. Hence, the appeal filed by the Revenue is allowed for statistical purposes. 16. Even in ITA No.1169/Chny/2019 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
