ACIT 7(2)(1), MUMBAI vs. MEDUSIND SOLUTIONS INDIA P.LTD, MUMBAI

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ITA 6918/MUM/2016Status: DisposedITAT Mumbai04 May 2017AY 2011-122 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 upheld the CIT(A)'s order, stating that the deduction under Section 10A should be allowed before setting off brought forward business losses. This decision was based on the Bombay High Court's ruling in the assessee's own case and other precedents.

What were the facts?

The assessee claimed deduction under Section 10A of the Income Tax Act without setting off brought forward business losses. The Assessing Officer allowed the deduction after setting off these losses, but the CIT(A) agreed with the assessee. The Revenue appealed this decision.

What were the issues?

The primary issue was whether the deduction under Section 10A should be computed before or after setting off brought forward business losses.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)

Hearing: 2.5.2017Pronounced: 2.5.2017

The appeal filed by the Revenue is directed against the order dated 26.9.2016 passed by the learned CIT(A)-13, Mumbai and it relates to A.Y. 2011-12. The Revenue is aggrieved by the decision of the learned CIT(A) in holding that deduction u/s. 10A of the Act has to be allowed before setting off of brought forward business losses.

2.

I heard the parties and perused the record. The assessee-company is engaged in the business of providing information technology enabled services. It claimed deduction u/s. 10A of the Act in respect of profits generated from its business. However, deduction was claimed by the assessee without setting off of brought forward business loss of earlier years. The Assessing Officer did not agree with the computation of the assessee and accordingly allowed deduction u/s. 10A of the Act after allowing setting off of brought forward business loss of earlier years. The learned CIT(A) agreed with the contentions of the assessee and accordingly, by following the decision rendered by Hon'ble Bombay High

2 Medusind Solutions India Pvt. Ltd.

Court in the case of CIT Vs. Black & Veatch Consulting Pvt. Ltd. (348 ITR 72) and also decision rendered in assessee’s own case for A.Y. 2006-07 in dated 5.12.2010, allowed deduction u/s 10A without setting off of the brought forward business losses. The Revenue is aggrieved by the decision of the learned CIT(A).

3.

At the time of hearing learned AR submitted that the decision rendered by the Coordinate Bench in assessee’s own case for A.Y. 2007-08 has since been upheld by Hon'ble Bombay High Court, vide its order dated 7.9.2016 passed in ITA No. 440/2014. Since the decision rendered by the Coordinate Bench of the Tribunal on identical issue in A.Y. 2007-08 has been uphold by Hon'ble Bombay High Court and since the decision rendered by the learned CIT(A) is in accordance with the same, I do not find any infirmity in the order passed by the learned CIT(A). Accordingly I uphold his order.

4.

In the result, appeal filed by the Revenue is dismissed.

Order has been pronounced in the Court on 2.5.2017.

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