ACIT, NEW DELHI vs. M/S. AMERICAN EXPRESS (INDIA) PVT. LTD., NEW DELHI

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ITA 2525/DEL/2014Status: DisposedITAT Delhi08 August 2016AY 2005-064 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the issue was already decided in favour of the assessee in previous assessment years, including the current one. Since the Revenue could not controvert the previous orders, the appeal was dismissed.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing a deduction of Rs. 20,11,90,973/- under Section 10A. The Revenue argued that the assessee did not fulfill the conditions for this deduction.

What were the issues?

Whether the assessee was eligible for deduction under Section 10A of the Income Tax Act, considering the conditions prescribed therein.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

Before: SHRI R. S. SYAL & SMT SUCHITRA KAMBLE

Hearing: 01.08.2016Pronounced: 08.08.2016

ORDER PER SUCHITRA KAMBLE, JM

This appeal is filed by the Revenue against the order dated 18/2/2014 passed by CIT(A)-XX, New Delhi. 2. Grounds of appeal are as under:-

“1. Whether the Ld.CIT(A) has erred on facts and in law to allow claim of deduction of Rs.20,11,90,973/- u/s 10A of the I.T. Act ignoring the fact that since the assessee did not fulfill the conditions prescribed in Section 10A(2) of the I.T Act, the benefits of the section cannot be given to the assessee. 3. The Ld. AR submitted that the issue before the Tribunal is already contested in the appeal of the assessee i.e. Assessment Year 2005-06 in the favour of the assessee. The Ld. AR further pointed out the order passed by the ITAT In ITA No. 3532/Del/2014 Assessment Year 2006-07 the said order held that:-

Para 12. Having heard the rival submissions and perused the relevant material on record, it is observed that this is a recurring issue coming from earlier years. This fact has also been recognized by the DRP on page 19 of its directions in which it has been noticed that the Tribunal has accepted the assessee’s claim for the benefit of Section 10A in this regard. We have also gone through the order passed by the Tribunal in the assessee’s own case for the Assessment Year 2004-05, a copy of which has been placed on record. This aspect has been discussed on page 21 of the order. After following the view taken by the Tribunal in the assessee’s own case for the Assessment Year 2003-04, the Tribunal has granted the benefit of deduction u/s 10A in respect of profits of newly set up AEGSC unit. In the absence of any distinguishing feature having been brought to our notice by the Ld. DR, respectfully following the precedent, we grant the benefit of deduction u/s 10A in respect of profits of AEGSC unit. This ground is allowed.

4.

The Ld. DR could not controvert the same in the light of the orders of the ITAT in assessee’s own case for the Assessment Year 2005-06 and 2006-07.

5.

We have heard both the parties and perused the orders passed by the ITAT in the earlier Assessment Years for the assessee. The issue contested by the Revenue herein is already decided in A. Y. 2005-06 and ITA No. 3532/Del/2014 A. Y. 2006-07. Therefore, the Revenue’s appeal does not survive.

6.

In the result, Appeal of the Revenue is dismissed.

The order is pronounced in the open court on 08th of August 2016.

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