TaxTMI 
TaxTMI 
2017 (8) TMI 130
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....o as the Act) in respect of Unit II and Unit III. The Assessing Officer did not allow deduction under Section 10A. In appeal, the Commissioner (Appeals) called for the remand report. The Assessing Officer submitted the remand report. The remand report favoured the assessee. However, the Commissioner (Appeals) dismissed the appeal. The assessee filed an appeal before the Tribunal. The Tribunal allowed the appeal and held that Unit II and Unit III are entitled for the benefit under Section 10A of the Act. Aggrieved thereby, the present appeal by the department. 3 The Revenue has filed the appeal on following grounds: 7.1 Whether on the facts and in the circumstances of the case and in law, the Hon. ITAT erred in concluding that the bene....
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....earned counsel, the said judgment would squarely apply in the present case and even the judgment of the Apex Court in Textile Machinery Corporation Ltd. vs. CIT reported in 107 ITR 195 was referred thereto. He further submits that there was no independent registration of Unit II and Unit III with STPI which would demonstrate that it was not independent new undertaking. This fact has been lost sight of by the Tribunal. If the said business was not merely an expansion but a new undertaking, then certainly a fresh permission would have been required. The same is not forthcoming. In view of that, it was not appropriate for the Tribunal to reverse finding of fact arrived at by the Commissioner (Appeals) and the Assessing Officer. The learned cou....
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....filed by the Revenue against the judgment of the Tribunal in Patni Computer Systems Ltd. vs. Deputy Commissioner of Income Tax, Circle 4. The learned counsel also relies on the judgment of this court in the case of The Commissioner of Income Tax IV vs. Symantee Software India (P) Ltd. bearing Income Tax Appeal No.1534 of 2012, decided on 12 th December 2014. 7 The learned counsel submits that provisions of Section 10A will have to be liberally construed with regard to the object in view. The benefit is to be given to the new undertaking by way of incentive under Section 10A of the Act. The restriction imposed therein will have to be liberally construed. The learned counsel relies on the judgment of Bharat General Insurance vs. Commission....
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....he nature of activity of both the units is totally different not only vis-a-vis each other but also vis-a-vis the activity carried on by the first unit. 5. The customers of each unit are completely different / unrelated and both units have new and independent sources of income. 6. While Unit1 is engaged in the business of software development, Unit2 is engaged in non-voice BPO business (Insurance claim processing)and Unit 3 engaged in voice BPO (Call Center). 7. While Unit1 earns revenue predominantly from within India, Units 2 and 3 earn revenues wholly from exports outside India. 11 The Assessing Officer in his remand report has specifically observed that both units were set up with fresh investments. The assessee purchased pl....
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.... issued to the Assessing Officer dated 10th December 2008, the letter of the Director, STPI, intimating formation of Unit II so also another letter to Director, STPI, seeking permission for bonding facility for Unit II and approval from Director, STPI for Unit II, the letter to the Director, STPI, intimating formation of Unit III, letter to Director, STPI, seeking permission for bonding facility for Unit III and approval from Director, STPI for Unit III. After considering all the documentary evidence and the remand report of the Assessing Officer, the Tribunal agreed with the remand report of the Assessing Officer and held that the assessee would be entitled for benefit of Section 10A of the Act. 14 The assessee has relied on the judgmen....