TaxTMI 
TaxTMI 
2018 (3) TMI 1171
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....he assessee, is engaged in the business of software development. It filed its return of income for ay 2009-10 on 30.09.2009 claiming deduction u/s 10A. On scrutiny, the original assessment order was passed u/s 143(3) on 30.12.2011 making disallowances u/s. 40(a)(i) &u/s 14A. Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) granted relief vide an order dated 11.02.2013. Aggrieved against that order, the Revenue filed an appeal before the ITAT and the ITAT vide its order dated 25.02.2015 set aside the order of CIT(A) and remitted the matter back to the AO to decide the issue after considering the facts. Subsequently, the AO issued notice u/s 148 dated 29.03. 2014 and completed the re-assessment u/s 143(3) r.w.s. 147 di....
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....reselling and servicing web hosting and related consultancy services upto the FY 1999-00 relevant to the AY 2000- 01." i.e. the appellant being engaged in above activity in the first year of its incorporation, is not being appreciated. 6. The learned Commissioner of Income Tax (Appeals) has ignored the fact that Section 10A eligibility was already considered during regular assessment and reopening the case on the same set of grounds is merely a change in opinion." 3. The AR submitted that the assessee is a private limited company, engaged in the business of software development and provides complete lifecycle services, ranging from new product development, product advancement to product migration, re-engineering, sustenance and ....
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....; Amount in Rs. Disallowance u/s. 40(a)(i) 5,15,04,375/- Disallowance u/s 14A 90,996/- Total 5,15,95,371/- The above order was passed after allowing the claim of deduction of Section 10A to the extent of Rs. 7,33,78,813/-. 4 11th Feb, 2013 CIT(A) order was passed deleting the a....
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.... ventured into the operation of manufacturing software from assessment year 2000-01only which is also evident from the financials for the assessment years 1999-2000 and 2000-01, as reflected in the P & L account for the year ended 31.03.2000, which is extracted as under: Schedule 31.03.2000 31.03.1999 Income Sales I 554.780 137.250 Service Charges - Domestic J 590.364 123.900 Service Charges - Export K 5,503.575 0 Bank Interest L 21.856 0 Thus, it is pleaded that the deduction u/s. 10A is to be reckoned beginning with the assessment year in which the undertaking began to manufacture or produce ....
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....ders of the AO and the CIT(A). 4. We have considered the rival submissions and gone through the relevant material. It is clear from the above that though the assessee came into existence on 04.08.1998 and was doing domestic business, during the year 2000 only it ventured into development of software and related operations . Further, it got registered with STPI as a 100% EOU for the purpose of export of software and allied services in the assessment year 2000-01. Further, it had obtained import licence on 29th March, 2000 for the purpose of export and consequently commenced its operations of exports. In other words, the assessee ventured into the operation of manufacturing software from assessment year 2000-01 only. Now, let us examine se....