TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 409
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....e and in law, the Ld.CIT(A) has erred in deleting the addition of Rs. 8,70,25,513/- made on account of disallowance of the claim u/s 10A of the I.T. Act. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to verify the assessee's claim that the loss relates to the STPI unit by treating the loss on sale of assets of Rs. 14,06,578/- as business loss and to be considered for computation of deduction u/s 10A of the IT Act. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." B. C.O. No.167/Del/2014 (Assessee's Cross Objections): 1. "That on the basis of material on record, the Learned CIT(A) ought to have held that a new in....
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....t order, the assessee preferred appeal before Ld. CIT(A). 2.3 Ld. CIT(A) though agreed with the view of the Assessing Officer that as no new unit was set up on 16.03.2000 and the assessee had converted its existing domestic unit to STPI unit, he held that assessee is eligible for deduction u/s. 10A of the Act for relevant assessment year. In order to arrive at this conclusion, the Ld. CIT(A) relied upon the order of his predecessor for AY. 2002-03, who held that there is no bar in law to claim deduction u/s 10A, in cases where deduction u/s 80HHE has been earlier claimed and allowed, provided that all the conditions of Section 10A of the Act are satisfied. Ld. CIT(A) for Assessment Year 2002-03 held as under: "i) The assessee had merely ....
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....of Ld. CIT(A) that the assessee can claim deduction u/s 10A where deduction u/s 80HHE was earlier claimed and allowed, provided conditions u/s 10A were satisfied. 4. On the contrary, Ld. D.R. relied on the orders of authorities below. 5. Ld. A.R. submitted that the assessee was eligible for claim u/s 10A of I.T. Act in assessment year 2005-06, even if it is held that the assessee had converted its existing domestic unit to STPI unit. For this purpose he drew our attention to circular No. 1 of 2005 dated 6.1.2005 issued by CBDT. He submitted that as per the circular the assessee is eligible for deduction for claim u/s 10A of I.T. Act in asstt. year 2005-06 as the same would be 10th year starting from asstt. year 1996-97 ( year in which ded....
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....see's own case for asstt. year 2002-03, have dealt with the issue as under: "We first consider the alternative contentions of the assessee for the Assessment Year 2001-02. 'The Ld. CIT(A) in his order for the Assessment Year 2002-03 has given a specific finding at page 14, that even if the unit of the assessee has held to have been converted from existing domestic unit to a STPI unit it would still be eligible to claim deduction u/s 10A of the Act from the date of conversion, for an unexpired period of 10 years starting form Assessment Year 1996-97. This finding of the First Appellate Authority is not challenged by the revenue. The Assessment Year 2001-02 falls within the unexpired period of 10 years, from the year set up of the first dom....
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....s reiterated the observations made for earlier years, therefore, the findings of the CIT(A) for A.Y. 2002- 03 are relevant to A.Y. 2005-06 also. Thus, concurring with the reasoning and findings given by the CIT(A) for A.Y. 2002-03, with regard to the admissibility for the 10A deduction in para 2 of his order dated 29.2.08, it is held that the appellant is entitled to the deduction of Rs. 87025513 u/s 10A." 8. In the course of hearing before us the Ld. D.R. supported the order of AO. Further, he was unable to explain how the order of Ld. CIT(A) was erroneous in law or on facts. 8.1 The Ld. Counsel for the assessee vehemently contended that the direction issued by Ld. CIT(A) was in accordance with law. 9. We have heard both sides carefull....