2018 (1) TMI 336

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....ances of the case, and in law the Tribunal erred in allowing deduction under Section 10A of the Act, 1961 ignoring the fact that the assessee is not entitled to the claim of deduction under Section 10A?" 3. The Respondent - Assessee has filed a return income for the subject Assessment Year offering a sum of Rs. 9.90 lakhs after claiming benefit of exemption under Section 10A of the Act. This exemption under Section 10 A of the Act was claimed because it had set up unit at Shashtra Dhara Software Development Park (STPI) at Dehradun to develop and export PC Suit Software Chip used in mobile phones. The Assessing Officer denied the benefit of Section 10A of the Act to the Respondent Assessee in respect of its software unit at Dehradun on the....

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.... the Act, to the Appellant's Dehradun Unit is not sustainable for the following reasons:- (a) Dehradun Unit which claims the benefit of Section 10A of the Act is sham unit; (b) Dehradun Unit which claims the benefit of Section 10-A of the Act is nothing but extension of Bombay unit; and (c) The majority of the work done to manufacture the software at Dehradun to claim the benefit of Section 10A of the Act was by sourcing it from third parties. 7. We find that the impugned order itself records the fact that it is undisputed position before the Tribunal that there is a unit at Malad which has developed basic engine and there is another unit at Dehradun, STPI, where the PC Suit Software Chip was developed and exported. Consequent....