TaxTMI 
TaxTMI 
2020 (11) TMI 379
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.... 18.03.2003 and as worked out for the earlier Assessment Years 1998-99 and 1999-00? (ii) Whether the appellate authority were correct in accepting the estimation in respect of payments to sub contractors, royalties, technical fees, communication expenses based on the turnover when the accounts originally rendered and subsequent to survey was found to be inaccurate and especially when the cost of materials and services in respect of STP units and non STP units had been correctly worked out? (iii) Whether the appellate authority were correct in holding that maintenance of separate accounts for STP units and non STP units was only directory and not mandatory in accordance with RBI conditions Government Notification and Income Tax Act? (iv) Whether the appellate authority were correct in holding that payments made to sub contractors who have separately exported and have been issued foreign inward remittance certificate and have also claimed 10A exemption will also be entitled to double exemption under Section 10A of the Act in hands of the assessee? (v) Whether the appellate authority were correct in holding that the assessee would be entitled to exemption under Section 10A of ....
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....n 10A of the Act was denied. 3. The assessee thereupon approached the Commissioner of Income Tax (Appeals) by filing an appeal, who by an order dated 08.09.2004 inter alia held that there is no provision under Section 10A of the Act that 50% of the sales from STP units have to be exported and similarly, the statute does not lay down any condition that the assessee should maintain separate accounts in respect of STP units and non STP units. Accordingly, it was held that the condition laid down by the Reserve Bank of India is only directory in nature and the assessee is entitled to exemption under Section 10A of the Act. It was further held that sub contractors have exported the goods on the basis of foreign inward remittance certificates and even if they have claimed exemption, the same would not tantamount to double exemption as it is permissible in law. Being aggrieved, the assessee as well as the revenue preferred appeals before the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short). The tribunal by an order dated 31.10.2007 dismissed the appeal preferred by the revenue and allowed the appeal preferred by the assessee in part. Being aggri....
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....stant case, the assessee has only exported to 56.056% and since, the assessee had violated the provision of Section 10A(2)(1a) of the Act, therefore, it is not entitled to exemption under Section 10A of the Act. It is also submitted that the Commissioner of Income Tax (Appeals) as well as the tribunal have not recorded any finding on this issue and the aforesaid aspect of the matter requires examination. In support of aforesaid submissions, reference has been made to the provisions of STPI Registration Scheme and STP Scheme. 7. On the other hand, learned Senior counsel for the assessee while inviting the attention of this court to para 2.24 of the order passed by the Commissioner of Income Tax (Appeals) as well as paras 18 to 22 of the order passed by the tribunal submitted that with regard to first two substantial questions of law, concurrent findings of fact have been recorded by the Commissioner of Income Tax (Appeals) as well as the tribunal, which is based on meticulous appreciation of evidence on record and it has rightly been held that allocation of overhead expenses has to be made on turnover basis. The aforesaid finding cannot be said to be perverse. It is also urged that....
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....LTD.', (2012) 18 TAXMANN.COM 57 (KARNTAKA), 'COMMISSIONER OF INCOME TAX, BANGALORE VS. MILENNIA DEVELOPERS (P.) LTD.', (2018) 100 TAXMANN.COM 369 (KARNATAKA) and 'COMMISSIONER OF INCOME-TAX III VS. M/S QUINTILES RESEARCH', I.T.A.NO.282/2014 DECIDED ON 14.12.2020. 8. We have considered the submissions made by learned counsel for the parties and have perused the record. We propose to deal with substantial questions of law ad seriatum. The substantial question of law No.1 and 2 are related to each other, therefore, we propose to deal with the same together. The Commissioner of Income Tax (Appeals) in paragraph 2.24 of its order has held that in the remand report dated 27.02.2004, the Assessing Officer has reported that the assessee has been able to bifurcate STPI receipts, 80HHE receipts and domestic receipts. It has further been held that direct expenses relating to domestic receipts and export receipts have also been segregated and direct expenses of export turnover are apportioned on the basis of percentage turnover of STPI and 80HHE receipts. The Assessing Officer in its remand report has accepted the fact that identification was possible and it has been corre....
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....94, in any electronic hardware technology park, or, as the case may be, software technology park; (ia) in relation to an undertaking which begins to manufacture or produce any article or thing on or after the 1st day of April, 1995, its exports of such articles or things are not less than seventy-five per cent of the total sales thereof during the Previous Year. (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence : Provided that this condition shall not apply in respect of any industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section; (iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation -- The provisions of Explanation 1 and Explanation 2 to sub- section (2) of section 80-I shall apply for the purposes of clause (iii) of this sub- section as they apply for the purposes of clause (ii) of that sub-section. 10. Thus, from perusal of Sub-Section ....