CLARION TECHNOLOGIES PVT. LTD.,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,,

आदेश / ORDER

PER VIKAS AWASTHY, JM

These two appeals have been filed by assessee against the orders of Commissioner of Income Tax (Appeals)-1, Pune passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the assessment years 2010-11 & 2011-12, respectively. Both the impugned orders are dated 13.04.2016.

2 ITA Nos.1361 & 1362/PUN/2016 A.Ys.2010-11 & 2011-12

arising from same set of facts, both the appeals are taken up together for

adjudication and are disposed of vide this common order.

the issues raised by assessee in both the assessment years i.e. 2010-11 &

2011-12 are identical. Therefore, arguments made in respect of assessment

year 2010-11 would equally apply to assessment year 2011-12. The ld. AR

submitted that assessee is engaged in the business of development of

computer software. The assessee is registered with the STPI as 100% export

oriented unit. The ld. AR contended that the assessee in its return of income

for assessment year 2010-11 had made claim of deduction u/s.10B of the

Act. However, the claim of assessee was rejected by the Assessing Officer. In

First Appellate proceedings, the assessee assailed the rejection of claim

u/s.10B of the Act and also made alternate claim of deduction u/s.10A of

the Act. The Commissioner of Income Tax (Appeals) accepted the alternate

contention of the assessee and allowed the claim of deduction of

Rs.2,65,62,440/- u/s.10A of the Act as per Form-56F filed by the assessee.

In First Appellate proceedings, the Commissioner of Income Tax (Appeals)

allowed deduction as per Form-56F which was staggered (50%) as per the

requirement of section 10A(1A) of the Act and not as per provisions of section

10A(1) of the Act. In the Audit report, profits from eligible unit were shown

as Rs.5,31,24,480/- however, claim of deduction was made only in respect of

50% of such profits. The assessee realized this mistake and thereafter, filed

petition u/s.154 of the Act for rectification of the mistake and also furnished

revised Form-54F claiming 100% deduction. The Commissioner of Income

Tax (Appeals) rejected the contention of the assessee and held that revised

3 ITA Nos.1361 & 1362/PUN/2016 A.Ys.2010-11 & 2011-12

Form-56F is additional evidence which cannot be taken into consideration in

the proceedings u/s.154 of the Act.

3.1 The ld. AR submitted that assessee has furnished revised Form-54F to

rectify the mistake and not as fresh claim. The Commissioner of Income Tax

(Appeals), in principle, had held that the assessee is eligible for claiming

deduction u/s.10A of the Act.

vehemently relied on the impugned order. The ld. DR submitted that the

Commissioner of Income Tax (Appeals) has granted relief to the assessee as

claimed in Form-56F. The Commissioner of Income Tax (Appeals) in its order

dated 11.12.2015 has no where mentioned that the relief is to be granted

under sub section (1) or sub section (1A) of section 10A of the Act. Taking

advantage of the same, now the assessee is trying to enlarge the scope of

relief by filing fresh Form-56F. As per Form-56 originally filed by assessee,

the relief was sought under sub section (1A) and the same was allowed.

and have perused the orders of Authorities below. The assessee in appeal

has raised as many as 13 grounds. All the grounds of appeal are directed

against single issue of assessee’s rejection of claim u/s.10A(1) of the Act in

proceedings u/s.154 of the Act. The Commissioner of Income Tax (Appeals)

in original order dated 11.12.2015 in principle allowed the claim of assessee

u/s.10A of the Act. A perusal of the documents on record reveal that the

assessee filed Audit Report and has claimed deduction by filing Form-56F.

The relief as sought in Form-56F, was allowed as per prayer of the assessee.

In the entire, claim made by the assessee and in the order passed by the

4 ITA Nos.1361 & 1362/PUN/2016 A.Ys.2010-11 & 2011-12

Commissioner of Income Tax (Appeals) there is no specific reference as to the

relief sought/granted is u/s.10A(1) or 10A(1A) of the Act. The claim made by

the assessee in Form-56F implies that the relief has been claimed by

assessee under the provisions of section 10A(1A) of the Act. The assessee in

rectification petition has urged that the assessee is eligible and has sought

relief under sub section (1) of the section 10A. Taking into consideration

entirety of facts, we are of considered view that this issue needs revisit to the

file of Commissioner of Income Tax(Appeals). The Commissioner of Income

Tax (Appeals) shall re-examine the assessee’s eligibility for claiming

deduction u/s.10A(1) vis-a-vis 10A(1A) of the Act. The Commissioner of

Income Tax(Appeals) shall grant relief to the assessee after ascertaining

assessee’s eligibility under the relevant provisions. Needless to say,

Commissioner of Income Tax (Appeal) shall follow the principles of natural

justice before passing the order on this issue. The grounds raised by the

assessee are allowed for statistical purposes, accordingly.

ITA No.1362/PUN/2016 A.Y.2011-12

year 2011-12 are identical to the facts in assessment year 2010-11.

Therefore, findings given by us while deciding the appeal of the assessee in

assessment year 2010-11 would mutatis-mutandis apply to assessment year

2011-12. Accordingly, grounds raised in appeal by assessee for assessment

year 2011-12 are allowed for statistical purpose for similar reasons.

5 ITA Nos.1361 & 1362/PUN/2016 A.Ys.2010-11 & 2011-12

Order pronounced on Monday, the 29th day of October, 2018.

Sd/- Sd/- R. S. SYAL VIKAS AWASTHY VICE-PRESIDENT JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 29th October, 2018 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :

अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals)-1, Pune. 4. The Pr. CIT-1, Pune. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” ब�च, 5. पुणे / DR, ITAT, “B” Bench, Pune. गाड� फ़ाइल / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.