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TMI Blog2024 (1) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for benefits within the meaning of section 10AA of the I.T. Act, 1961 with regard to units at Chennai and at Coimbatore SEZ despite the fact that assessee has not satisfied the conditions mentioned u/s 10AA(4) of the I.T. Act, 1961. 2. The appellant craves leave to add, alter or amend any of the ground(s) of appeal before or during the course of hearing of the appeal." 3. The only effective ground raised by the Revenue in this appeal is against the eligibility of benefit u/s 10AA of the Income Tax Act, 1961 ("the Act"). 4. Facts in brief are that the assessee company e-filed return of income, declaring total income of INR 1,26,75,220/- on 29.03.2015 and further income was revised on 29.03.2015, declaring income of INR 1,26,75,220/-. The case of the assessee was selected for scrutiny assessment and the assessment u/s 143(3) of the Act, was framed vide order dated 15.12.2016. Thereby, the Assessing Officer ("AO") disallowed the claim u/s 10AA of the Act, amounting to INR 10,58,45,315/- following his order for Assessment Year 2013-14. 5. Ld.CIT DR for the Revenue vehemently argued that Ld.CIT(A) was not justified in deleting the disallowance. He strongly relied upon the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has pointed out that the assets of the value of Rs. 40,72,127/- were acquired as part of running business unit of M/s AXA Business Service Pvt. Ltd vide agreement dated 13.04.2012. Para 3.5 of this agreement dated 13.04.2012 reads as follows- 3.5. Subject to the provisions of this Agreement, the Purchaser hereby agrees to purchase and the Vendor hereby agrees to sell, assign, transfer and convey to the Purchaser on the Transfer Date (in the manner and to the extent indicated in Clause 3.7), the Business, free from all Encumbrances, as a slump rate of a going concern, at and for an aggregate purchase price of INR 105, 000, 000 (Purchase Price") (Rupees One Hundred Five Million Only). Such Purchase Price to be reduced with the Working Capital" as determined close to the Transfer Date." 5.5. It has been informed by the appellant that this unit (ie. the acquired unit) is located elsewhere and was acquired as a running unit and continued operations as a non SEZ unit. The AO notes at para 4.6 of the assessment order as hereinafter- 4.6. Vide show cause notice dated 21.03.2016, the assessee was asked to furnish the justification of claim of deduction u/s 10AA along with justifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, dismissed. 9. In the result, the appeal of the Revenue is dismissed. ITA No.1068/Del/2020 [Assessment Year : 2016-17] 10. Now, we take Revenue's appeal in ITA No.1068/Del/2020 [Assessment Year 2016-17] wherein Revenue has raised following grounds of appeal:- 1. "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) was justified in holding that the assessee is eligible for benefits within the meaning of section 10AA of the Income tax Act, 1961 with regard to units at Chennai and at Coimbatore SEZ despite the fact that assessee has not satisfied the conditions mentioned u/s 10AA((4) of the Income Tax Act, 1961. 2. The appellant craves leave to add, alter or amend any of the ground(s) of appeal before or during the course of hearing of the appeal." 11. Facts are identical as were in ITA No.7568/Del/2018 for the Assessment Year 2014-15. We have decided the issue against the Revenue by observing as under:- 7. "We have heard contentions of Ld. Authorized Representatives of both the parties and perused the material available on record. We find that Ld.CIT(A) has reproduced the order of Ld.CIT(A) passed in Assessment Year 2013-14 who has given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncumbrances, as a slump rate of a going concern, at and for an aggregate purchase price of INR 105, 000, 000 (Purchase Price") (Rupees One Hundred Five Million Only). Such Purchase Price to be reduced with the Working Capital" as determined close to the Transfer Date." 5.5. It has been informed by the appellant that this unit (ie. the acquired unit) is located elsewhere and was acquired as a running unit and continued operations as a non SEZ unit. The AO notes at para 4.6 of the assessment order as hereinafter- 4.6. Vide show cause notice dated 21.03.2016, the assessee was asked to furnish the justification of claim of deduction u/s 10AA alongwith justification of compliance of all the conditions laid down for this purpose. In response to the same the assessee has submitted its reply vide letter dated 28.03.2016 stated that - "The assessee company fulfills all the requisite conditions mentioned under section 10AA of the Act for the purpose of claiming exemption. Sub-section (4) to section 10AA list out following conditions to be eligible to claim exemption. Clause of section 10AA(4) Summary of section Our submissions Reference (i) It has begun to provide servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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