TaxTMI 
TaxTMI 
2017 (5) TMI 1308
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....ard together and are being disposed of by this common order for the sake of convenience. 2. The Revenue has raised the following grounds:- 1. "On the facts and circumstances of the case and in law the learned CIT(A) erred in holding that the assessee company was entitled to exemption u/s 10A of the Income Tax Act." 2. "On the facts and circumstances of the case and in law the learned CIT (A) erred in not appreciating the fact that the assessee company had not produced or manufactured computer software, which is sane qua non for invoking provisions of section 10A in its favour." 3. "On the facts and circumstances of the case and in law the learned CIT(A) erred in deleting the addition of Rs. 23,11,986/- made out of sales promotio....
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....nd in law, the Ld. CIT(A) has grossly erred in confirming the action of the AO by disallowing the sales promotion, client petty expenses and client meeting expenses of Rs. 3,78,433/-, Rs. 9,56,100/- and Rs. 9,78,453/- respectively. 2. On the facts, and in the circumstances of the case, and in law, the CIT(A) grossly erred in confirming the action of the AO by disallowing the miscellaneous advances written off and sundry balances written off of Rs. 2,85,939/- and Rs. 3,62,156/- respectively. 3. On the facts, and in the circumstances of the case, and in law, the CIT(A) grossly erred in confirming the action of the AO by disallowing the Rs. 85,99,734/- under Section 40(a)(ia) of the Act. 4. On the facts, and in the circumstances of th....
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.... assessee has not been able to prove satisfactorily that there was actual manufacture of software or export thereof, since the alleged transactions are entirely with its parent company and it is not known as to exactly what is the nature of services the foreign inward remittances had been received from the parent company. According to him even if the benefit of doubt is given and it is considered that the part of the foreign inward remittances that have been received is in connection with export of manufactured material/software, deduction u/s 10A of the Act will not be allowable since as per the provisions of that section 100% of the articles, things, software should have been manufactured. Accordingly, the AO has assessed the income of th....
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....ption u/s. 10A of the Act in the immediately preceding assessment year i.e. AY 2006-07. 7. We have heard both the parties and perused the records especially the impugned order as well the order of the Tribunal in assessee's own case for the AY 2006-07, as aforesaid. We find that the Coordinate Bench, ITAT, New Delhi vide its decision dated 10.2.2017 in assessee's own case passed in ITA No. 236/Del/2011 (AY 2006-07) in Revenue's Appeal has decided the exactly similar and identical issue and adjudicated the same vide para no. 5 to 9 at page no. 4 to 7 relating of exemption u/s. 10A in favour of the assessee and against the Revenue. For the sake of convenience, the finding of the Tribunal in the aforesaid decision are reproduced as under:- ....
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....d during the course of assessment proceedings before the AO vide its submission dated December 29, 2009. In the circumstances, we will find it difficult to hold that the assessee could not prove the actual development or export of the software. 8. Reliance is placed by the AR on a decision of a coordinate bench of this Tribunal in Kiran Kapoor vs. ITO 150 ITD 237 (Del.), wherein at page no. 8 paragraph no. 15 it was held that "in our considered opinion the meaning of phrase or word had to be seen in the framework of the context in which it has been used. Phrase "Manufacture or produce" will have a different contextual meaning when it is read in a statute let us say for e.g. the Excise law, since the parliamentary intention there will ....