BOSTAN ANALYTICS P.LTD,MUMBAI vs. DCIT RG 6(1), MUMBAI

This is an appeal filed by the assessee against the order of CIT(A) for the assessment year 2007-2008, in the matter of order passed u/s 143(3) r.w.s. 263 of the I.T.Act.

The only grievance of the assessee relates to deduction u/s 10A while computing book profit u/s 115JB, whether as per normal provisions or as per MAT working.

Rival contentions have been heard and record perused.

Facts in brief are that the assessee is engaged in the business of back office operations by way of business and market research and financial 2 Boston Analytics Pvt. Ltd., analytics. The assessee has only one undertaking – profit from which is eligible u/s.10A. In the Return of Income the assessee declared total income under normal provisions at Rs.NIL, after claiming deduction u/s.10A to the tune of Rs.64,60,154/-, and also NIL income u/s. 115JB (MAT) after claiming deduction in respect of section 10A to the tune of Rs.78,93,531/- in the MAT working. The assessment was completed u/s.143(3) vide order dated 24th December 2009 accepting the return, as filed.

Thereafter, in pursuance of direction of CIT(A) u/s. 263 vide order dated 09/03/2012, the AO passed order u/s. 143(3) r.w.s. 263 wherein, while computing book profit deduction u/s. 10A was taken as per normal provisions instead of as per MAT working. The issue under consideration is squarely covered by the decision of Hon’ble Supreme Court in the following cases:- i. Ajanta Pharma Limited vs. CIT reported (327 ITR 311) ii. CIT vs, Bhari Information Tech Systems (P) Ltd., (340 ITR 593) 6. In the case of Bhari Information Tech Systems (supra) the Hon’ble Supreme Court has held as under:- “Held that the deduction under section 80HHE of the Income-Tax Act, 1961, in the case of export of computer software has got to be worked out on the basis of adjusted book profits under section 115JA and not on the basis computed under the regular provisions of law applicable to the computation of profits and gains of business.”

Respectfully following the order of the Hon’ble Supreme Court, which has been subsequently followed in various High Courts and Benches of the Tribunal, we direct the AO to allow deduction u/s. 10A, while