2015 (11) TMI 749

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....y Parks of India (STPI) entitles the appellant to claim benefits under 100% EOU Scheme and hence ought to have granted claim of deduction made by the appellant. 2. Ld. CIT(A) erred in law and on facts in dismissing the additional ground taken by the appellant to alternatively grant deduction u/s 10A of the Act. Ld. CIT(A) gravely erred in rejecting to adjudicate additional ground that goes to the root of the matter by wrongly placing reliance on judgment of Goetz (India) Ltd. Ld. CIT(A) ought to have granted deduction as all the conditions laid down u/s 10A of the Act were fulfilled by the appellant. 3. Levy of interest u/s 234B & 234C of the Act is not justified. 4. Initiation of penalty u/s 271(1)(c) of the Act is not justified. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 2. Briefly stated the facts of the case are that the assessee company is a Private Ltd. Co. carrying on the business of providing services as BPO (Business of Process Outsourcing) for providing accounting services. Assessee has filed its return of income on 29.9.2008 declarin....

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.....2011, contending that it is eligible for deduction u/s 10A of the IT Act and deduction may be allowed u/s 10A of the IT Act to it. 2.4 In view of above fact, I hold that the appellant had not fulfilled eligibility condition as laid down in sub-clause IV to explanation 2 to section 10B of the IT Act and accordingly, it is not eligible for deduction u/s 10B of the I.T. Act. This way, disallowance of deduction of Rs. 67,08,733/- claimed u/s 10B of the I.T. Act is confirmed. This ground of appeal is dismissed." 3. Aggrieved, the assessee is now in further appeal before the Tribunal. At the outset the ld. AR of the assessee submitted that the appellant is carrying on the business of process outsourcing activities like Revenue Accounting, Back Office Operations, Call centre, Data Processing etc. It is undisputed fact that the appellant is registered with Software Technology Park of India, Gandhinagar, Gujarat, as "Hundred Percent Export Oriented Undertaking" under STP Scheme for development of computer software and enabled services w.e.f. 28.06.2006. A copy of letter of approval is forming part from pages 1 to 4 of the Paper Book dated 15.3.2012. The ld. AR submitted that assessee....

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....oard appointed in this behalf by the Central Government, as Software Technology Parks of India (STPL), comes under the Ministry of Communication and Information Technology, Government of India. In support of its claim under section 10B of the Act being holding of letter of approval from STPL the ld. AR relied on the judgment of ITAT, Delhi Bench in the case of Regency Creators Ltd. in ITA No.1588/Del/2010; the order of ITAT, Ahmedabad Bench in the case of ITO vs. E-Infochip Ltd. in ITA No.2311/Ahd/2008 dtd.24th September, 2010; order of ITAT, Hyderabad Bench in the case of ACIT vs. Vision 2h + INC (2014) 34 ITR (Trib) 0510 (Hyderabad). 5. The ld. DR supported the orders of lower authorities. 6. We have heard the rival contentions and perused the material on record and gone through the judicial pronouncements referred by the ld. AR. The issue under appeal relates to examination of the claim of assessee under section 10B of the Act at Rs. 67,08,733/- which hitherto has been disallowed by the Assessing Officer and further sustained by CIT(A). From perusal of records we find that assessee was duly allowed deduction u/s 10B of the Act for Asst. Year 2007-08 and the same has not be....

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.... claim all benefits under 100% EOU Scheme as per Press Note 2 of 1993 (copy enclosed)". 8. In view of the above, we find the grievance of the assessee to be justified and it is accepted as such. We hold that the assessee is entitled to claim of deduction u/s 10B of the Act." In the case of ITO vs. E-Infochip Ltd. in ITA No.2311/Ahd/2008, pronounced on 24th September, 2014, the Co-ordinate Bench held as under :- "6. In view of the above findings of CIT(A), we find that the unit of assessee is registered with STPI and letter of acceptance is issued by the concerned authorities regarding legal agreement exercised by it. We find from the copy of certificate issued by Custom Authorities regarding permission and licence was granted on 04.03.2005 which dates that to the date of application and STPI the approving authority has not taken any adverse view. As regards to export realization by the unit which is deposited in Ahmedabad units bank account the foreign inward remittance certificates issued by Axis Bank Pune unit clearly mentioned that the same was issued by Head office of Axis Bank and it was deposited in account of Pune unit. In view of these facts, we are of the view tha....