TaxTMI 
TaxTMI 
2017 (1) TMI 1213
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.... 2. Facts necessary for disposal of the appeal are stated in brief. The assessee-company is engaged in the business of software and allied services. It is a 100% EOU and registered under Software Technology Parks of India, Hyderabad. The gross receipts of the assessee was Rs. 3.71 crores. For the year under consideration, the assessee admitted total income of Rs. 31,08,807 and book profit under section 115JB was admitted at Rs. 1,64,02,680. When the case was taken-up for scrutiny, the assessee furnished details of income declared wherein it was submitted that the total turnover was Rs. 3.67 crores and export turnover was Rs. 3.06 crores, out of which, deduction under section 10B was claimed at Rs. 1,35,17,323. 2.1. The Assessing Office....
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....oard. The assessee also relied upon the decision of the ITAT, Hyderabad Bench dated 10th April, 2012 in the case of M/s. Secunderabad Software Services P. Ltd., Hyderabad wherein the Bench observed that any EOU which has been registered with STPI is entitled for deduction under section 10B of the Act since it is enough if the assessee is registered with STPI. The Inter Ministerial Communication letter dated 23.03.2006 issued by the Secretary, Ministry of Communications and Technologies and the decision of the ITAT, Hyderabad Benches were strongly relied upon to contend that the assessee company is entitled to exemption under section 10B of the Act since it has obtained approval from the STPI. The Assessing Officer as well as the CIT(A) reje....
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....nce, the approval granted by the STPI should be deemed to be an approval by the Board and this issue has not been considered by the Assessing Officer as well as the CIT(A). It was further submitted that the ITAT, Hyderabad Benches have consistently taken a stand that an assessee who obtains approval from STPI is entitled to claim exemption under section 10B of the Act and in this regard, relied upon the decision of ITAT, Hyderabad Bench in the case of ITO vs., M/s. Megha Cyber Tech P. Ltd., vide order dated 06.06.2014 which in turn, relied upon the decision of ITAT, Hyderabad Bench in the case of Smt. K. Sudha Rani (ITA.No.1750/Hyd/2008 dated 30.10.2009). During the course of hearing, Learned Counsel for the assessee also adverted our atten....
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....rving that even in assessee's own case for the earlier year the Revenue has accepted the order passed by the ITAT. Recently i.e., on 17.06.2016 the ITAT, 'A' Bench, Hyderabad (ITA.No.1675/Hyd/2014) in the case of DCIT, Circle-16(2), Hyderabad vs., M/s. Pennywise Solutions P. Ltd., Hyderabad had taken note of the decision of the Hon'ble Delhi High Court in the case of Regency Creations but chose to follow the consistent view taken by the ITAT, Hyderabad Benches which inturn, were passed inconformity with the decision of the Hon'ble A.P. High Court as well as Hon'ble Gujrat High Court, and held that an assessee who obtains approval from the STPI can be said to have obtained approval from the Board and in such cases exemption under section 10B....
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....ble Delhi High Court and therefore, hold that the assessee is entitled to exemption under section 10B of the Act subject to fulfillment of other conditions. 5.1. Even otherwise, when there are two views possible the one which is in favour of the assessee deserves to be taken into consideration. It is also not out of place to mention that in the case of Smt. K. Sudha Rani the Revenue has accepted the view taken by the Hyderabad Benches for the A.Ys. 2005-06 and 2006-07. The Ld. D.R. could not place anything on record as to why the view taken by the Hyderabad Benches was accepted by the Revenue. In fact, the Hon'ble A.P. High Court had taken note of the same and the assessee-company had continuously projected before the Assessing Officer a....