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

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

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.

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