TaxTMI 
TaxTMI 
2022 (10) TMI 1186
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....d challenging the common order dated 30.06.2016 in ITAs No.868/2006 and connected cases passed by the ITAT (Income Tax Appellate Tribunal) for the Assessment years 2001-02, 2002-03 and 2005-06, wherein, common questions are raised for consideration. Hence, they are heard together and disposed of by this common order. 2. Brief facts of the case are, assessee is a 100% EOU (Export Oriented Unit) engaged in the business of Software development. Initially, it had set up an Unit in Mumbai during A.Y. 1991-92. Thereafter, it set up an unit in Trivandrum during A.Y. 1993-94 and a new Software Technology Park in Bengaluru in A.Y. 1996-97. 3. For A.Y. 1996-97, though assessee was eligible to claim exemption under Section 10A of the Income Tax ....
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....ection 10A of the IT Act for A.Y. 1998-99 by the CIT(A) has attained finality as the assessee did not challenge that finding. In reply Shri. Suryanarayana contended that the assessee had got substantial relief under Section 80HHE of the IT Act. Therefore, assessee did not choose to challenge it. He argued that notwithstanding disallowance of deduction under Section 10A of the IT Act for A.Y. 1998-949, the AO had granted the relief under Section 80HHE for the subsequent two years. 6. Placing reliance on Saurashtra Cement & Chemical Industries Ltd., Vs. CIT [1979(2) Taxmann) 22 (Guj) [para 7]], Direct Information (P.) Ltd. Vs.Income-tax Officer [(2011)15 taxmann.com 63 (Bom.) [para 17]] and Commissioner of Income tax- 2 Vs. Western Outdoor....
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.... disallowed the benefit under Section 10A of the IT Act for A.Y. 1998-99. For the said reason among others, ITAT has dismissed the appeal concurring with the finding of the CIT(A). 11. In the assessment order for the A.Y. 1997-98, the AO has recorded thus: "3. As in the earlier year, the assessee is engaged in the business of export out of India of computer software as also providing technical services out of India in connection with development or production of computer software. The assessee was having its units at SEEPZ, Mumbai which commenced operation during the A.Y. 1991-92 and another unit at Trivendrum which commenced operations during the A.Y. 1993-94. The assessee consolidated its operations at "Seepz" and "Trivandrum"....
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....elf, and in our opinion rightly, was whether the ITO was justified in refusing to continue the relief of tax holidy granted to the assessee-company for the assessment year 1968-69 in the assessment year under reference, i.e., 1969-70 without disturbing the relief granted for the initial year. It should be stated that there is no provision in the scheme of Section 80J similar to one which we find in case of development rebate which could be withdrawn in subsequent years for breach of certain conditions. No doubt, the relief of tax holiday under section 80J can be withheld or discontinued provided the relief granted in the initial year of the assessment is disturbed or changed on valid grounds. But without disturbing the relief granted in the....