TaxTMI 
TaxTMI 
2017 (3) TMI 1306
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....l read as under:- "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing deduction u/s. 10A amounting to Rs. 95,88,414/- to the assessee by ignoring the observations of the AO in its assessment order that the STPI certificate has been obtained for the existing business and not for new business. Thus, the conditions envisaged in Section 10A(2) of the Income Tax Act has not been fulfilled by the assessee company. 1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the above disallowance by ignoring the fact that the claim of deduction u/s.10A of the Act has already been denied to the assessee company in the assessment order for AY 2009-10 passed u/s. 14....
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....for deduction u/s.10A and in response to the same the assessee filed its reply. After considering the same, observed that the condition envisaged in section 10A(2) has not been fulfilled by the assessee company. Hence, deduction was not allowed to the assessee. Thereafter, the AO vide Order dated 12.3.2013 passed u/s. 143(3) of the I.T. Act,1961 and assessed the income at Rs. 95,95,920. 5. Against the said order of the Ld. AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 17.4.2014 has partly allowed the appeal of the assessee. 6. Aggrieved with the aforesaid order of the Ld. CIT(A), Revenue is in appeal and Assessee is in Cross Objection before the Tribunal 7. Ld. DR relied upon the order of the AO and rei....
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.... decided by me in Appeal No. 318/11-12 for the A Y 2009-10 in the assessee's own case by appellate order dated 27.02.2003 as under:- "6.2 From the STPI letter of approval dt. 23/09/2008 it is evident that the unit of the appellant was approved as 100% export oriented unit under STP Scheme w.e.f. 23/09/2008. The Green Card issued to the unit approving it under the STP scheme as a 100% export oriented unit for computer software is dt. 07/1 0/2008 and valid for 5 years upto 06110/2013. Under sec 10A(1) deductions is allowed from profits and gains as are derived by an undertaking from export of computer software. The requirement uls 1OA(2)(i)(b) is that the undertaking has begun or begins to manufacture or produce computer software....
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....ssment years, beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software, as a DTA unit. Further, in the year of approval, the deduction shall be restricted to the profits derived from exports, from and after the date of approval of the DTA unit as 100% EOD. Moreover, the deduction to such units in any case will not be available after assessment year 2009-10." Although the above circular is in the context of See 1 OB, the ratio of the circular equally applies to See lOA. In this view of the matter, I find support from the decisions of Hon 'ble Karnataka High Court in the case of CIT vs. Expert Outsource Pvt. Ltd. [2010] 20 ta....
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....oftware exports after the date of approval. Since STPI approval was received in the previous year relevant to A Y 2009-10, therefore, the profits derived from export of computer software during the previous year relevant to A Y 2010-11 will be eligible for deduction u/s lOA provided other conditions of see lOA are fulfilled by the appellant company. In the instant AY 2010-11 there is no dispute that the other conditions of see lOA are fulfilled by the appellant. It is also seen that in the A Y 2011- 12 the AO has allowed the appellant's claim of deduction u/s 10A. In view of the above, the AO is not justified in disallowing the claim of deduction u/s 1OA. The appeal is allowed in these grounds." 9.1 On perusing the above finding of t....