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Income Tax Appellate Tribunal, ‘A’ (SMC
Before: SHRI ABRAHAM P. GEORGE]
आदेश / O R D E R
In this appeal filed by the assessee, which is directed against an order dated 17.11.2017 of ld. Commissioner of Income Tax (Appeals)-13, Chennai, it is aggrieved on a disallowance of deduction claimed u/s.10A of the Income Tax Act, 1961 (in short ‘’the Act’’) for the impugned assessment year.
Ld. Counsel for the assessee submitted that assessee was a 2.
Export Oriented Unit (EOU), exporting software. As per the ld. Authorised Representative, though the assessee company was incorporated on 12th April, 1999, it had started manufacture and production only from the previous year relevant to assessment year 2001-02. However, as per the ld. Authorised Representative, lower authorities had considered assessee to have commenced production from 12th April, 1999. Submission of the ld. Authorised Representative was that lower authorities had reckoned year ending 31.03.2000 as first year of eligibility for deduction u/s.10A of the Act. Contention of the ld. Authorised Representative was that the first year of production was year ending 31.03.2001 and if first year was reckoned, as assessment year 2001-02 impugned assessment year would be the 10th year. However, as per the ld. Authorised Representative, lower authorities having taken previous year 1999-2000 relevant to assessment year 2000-2001 as the first year, the claim for deduction u/s.10A of the Act was denied for the impugned assessment year. As
per the ld. Authorised Representative, lower authorities wrongly reckoned the impugned assessment year to be the eleventh year.
However, as per the ld. Authorised Representative certificate dated 29.11.2017 of Software Technology Parks of India, Ministry of Electronics & Information Technology, Government of India clearly proved that first year of operation was 31.03.2001 relevant to assessment year 2001-02. Ld. Authorised Representative fairly admitted that certificate from Software Technology Parks of India mentioned above could be obtained by the assessee only after ld. Commissioner of Income Tax (Appeals) had issued the order for the impugned assessment year. According to him, the claim had to be considered for the impugned assessment year based on the certificate issued by Software Technology Parks of India.
Per contra, ld. Departmental Representative submitted that the question whether assessee had started operation in financial year 1999-2000 or 2000-2001 could be looked into by the ld. Assessing Officer considering the fresh evidence filed by the assessee.
I have considered the rival contentions and perused the 4. orders of the authorities below. Deduction u/s.10A of the Act was denied to the assessee, considering the previous year relevant to the impugned assessment year the eleventh year from the year of commencement of production /manufacture. However, contention of the assessee is that its first year of operation was year ending 31.03.2001. For this reliance, has been placed certificate dated 29.11.2017 of Software Technology Parks of India. Admittedly, this certificate was not placed before the lower authorities, since assessee obtained it only on 29.11.2017. To meet the ends of justice, I am of the opinion that assessee’s eligibility to claim deduction u/s.10A of the Act for the impugned assessment year, needs a fresh look by the ld. Assessing Officer. Ld. Assessing Officer has to consider the certificate of Software Technology Parks of India produced by the assessee before reaching a conclusion. Orders of the lower authorities are set aside. Question whether assessee was eligible for deduction u/s.10A of the Act for the impugned assessment year is remitted back to the file of the ld. Assessing Officer for consideration afresh in accordance with law.
In the result, appeal of the assessee is allowed for statistical 5. purpose.
Order pronounced on Monday, the 23rd day of July, 2018, at Chennai.