TaxTMI 
TaxTMI 
2020 (10) TMI 838
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....e Act"). 2. The inter connected issue raised by the Revenue is that the Learned CIT(A) erred in allowing the deduction under Section 10A of the Act amounting to Rs. 2,98,00,647/-. 3. The facts in brief are that the assessee in the present case is a partnership firm and engaged in the business of computer software development and IT enabled services. The assesseeis also registered with Software Technology Park of India (STPI),Gandhinagar. The assessee for the year under consideration filed its return of income declaring incomeat NIL after claiming the deduction of Rs. 2,98,00,647/- under the provisions of Section 10A of the Act which was also accepted by the AO in the assessment framed under Section 143(3) of the Act vide order dated 31stO....
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....t eligible for deduction. Accordingly, the Learned CIT under Section 263 of the Act set aside the assessment order framed by the AO under Section 143(3) of the Act dated 31st October 2012 for de novo assessment. 8. In view of the above, the AO issued notice under Section 143(2) dated 08thJune 2015 to the assessee for de novo assessment. Subsequently, the AO issued the show causenotice to the assessee under Section 142(1) of the Act dated 03rdJuly 2015 proposing the disallowance of the deduction claimed by it under Section 10A of the Act. However, there was no compliance from the side of the assessee. Thus, the AO, in the absence of any documentary evidence, disallowed the claim of the assessee for the deduction under Section 10A of the Act....
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....n letter dated 13.10.2015 issued by the Director of Software Technology Park of India, Gandhinagar. The Learned CIT(A) after considering the submission of the assessee allowed the deduction claimed by it under Section 10A of the Act by observing as under: 11.1 The assessee firm made 100% export sale. Its accounts have been duly verified by qualified Chartered Accountant who has certified that the assessee is eligible for exemption under Section 10B of the Act. 11.2 All the payment against export has been received through banking channel after duly certified by RBI, STPI and Chartered Accountant in Form 56F. 11.3 The Central Government of India vide Notification No. 33/(RE)/92-97 dated 22ndMarch 1994 distinguished between the provisions ....
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....n duly done in the present case. The Learned AR in support of his contention drew our attention on page 24 to 29 of the Paper Book where the copy of the registration certificate was placed which was renewed vide sanction letter dated 22ndAugust 2008, the copy of the same placed on page 30 to 31 of Paper Book. 14. The Learned AR also drew attention on the clarification letter issued by the Director of Gandhinagar Software Technology Park placed on page 32-33 of the Paper Book wherein it was stated that as per Notification No. 33/(RE)/92-97 dated 22ndMarch 1994 issued by Ministry of Commerce Government of India an individual unit may also be treated as STP unit. The assessee registered under STP scheme is a valid STP unit. The Learned AR veh....
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....h the Software Technology Park is sufficient compliance for complying with the condition as discussed above. 18. Now the controversy arises, whether it is one of the precondition for the assessee to be located in the electronic Software Technological Park for claiming the deduction under Section 10A of the Act. Indeed, the assessee is located in Ahmedabad whereas the office of Software Technology Park is in Gandhinagar. But, we find that the Director of GandhinagarSoftware Technology Park has clarified vide letter dated 13thOctober 2015 that the unit located in any area can be registered with it after complying the necessary conditions. The relevant extract of the clarification reads as under: "As per Point No. 2.2 of Notification No. 3....
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....echnology park as used in s. 10A has been defined. We are of the opinion that the AO has not properly analyzed the contents of para 2.2 of this notification as well as subsequent approvals given to assessee's unit by the Government on the basis of para 2.2 of the notification. While properly analyzing para 2.2 of the notification, the CIT(A) has rightly observed that there is no requirement of the notification that a particular unit is to be located inside a park but it is enough if the unit at a particular location is notified as STP. In the present case of the assessee, there is the approval of Government of India which indicates that the assessee's unit would be located in Gurgaon. Hence, we are of the opinion that the CIT(A) i....