DCIT, New Delhi V. M/s Vidyatech Solutions Pvt. Ltd., New Delhi

ITA 108/DEL/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6598 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 15-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 07-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRUJANI MOHANTY
• Assessee Lawyers: AMAR MITTAL

Judgement Text

ITA NO. 108/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H NEW DELHI BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 108/DEL/2011 A.Y. : 2007-08 DCIT, CIRCLE - 17(1), CR BUILDING, NEW DELHI VS. M/S VIDYATECH SOLUTIONS PVT. LTD., A-30, 2 ND FLOOR, KAILASH COLONY, NEW DELHI 110 048 (PAN : AABCV 1724 E) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. AMAR MITTAL, FCA DEPARTMENT BY : MS. SRUJANI MOHANTY, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM PER SHAMIM PER SHAMIM PER SHAMIM YAHYA: AM YAHYA: AM YAHYA: AM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 20.10. 2010 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INC OME TAX (APPEALS) ERRED IN ALLOWING DEDUCTION U/S 10A OF TH E IT ACT AMOUNTING TO ` 80,93,895/-, IGNORING THE PROVISIONS OF SECTIO N 80HHE(5) OF THE IT ACT. ITA NO. 108/DEL/2011 2 3. IN THIS CASE ASSESSING OFFICER DISALLOWED EXEMP TION OF ` 80,93,895/- CLAIM U/S 10A OF THE IT ACT. THE RELE VANT PORTION OF THE ASSESSING OFFICER S ORDER IN THIS REGARD ARE AS U NDER:- 6.7.1 AS ALREADY MENTIONED, THE ASSESSEE HAS CLAIM ED DEDUCTION U/S. 80HHE FOR THE ASSESSMENT YEAR 2003- 04. THE PROVISIONS OF SECTION 80HHE(5) PROHIBIT CL AIM OF DEDUCTION/EXEMPTION UNDER ANY OTHER PROVISIONS OF INCOME TAX ACT FOR THE SAME ASSESSMENT YEAR OR ANY SUBSEQUENT ASSESSMENT YEAR ONCE DEDUCTION U/S 80HHE IS CLAIMED /ALLOWED. IN THIS CASE, THE ASSESSEE HAS CLAIMED DEDUCTION U/S. 80HHE FOR THE ASSESSMENT YEAR 2003-04, THEREFORE, IN VIEW OF THE PROVISIONS OF SECTION 80HHE, THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION U/S 10A IN THE SUBSEQUENT ASSESSMENT YEARS. 7. THE ASSESSEE COMPANY HAS ALSO CONTENDED THAT ITS CLAIM FOR EXEMPTION U/S 10A HAS BEEN ALLOWED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)S IN THE EARLIER ASSESSMENT YEARS. WITH DUE RESPECT, IT IS POINTED OUT THAT EACH ASSESSMENT YEAR IS AN INDEPENDENT ASSESSMENT YEAR. MOREOVER, THE ORDER S OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IN ALLOWING CLAIM OF DEDUCTION U/S 10A IN THE EARLIER ASSESSMENT YEARS HAVE NOT BEEN ACCEPTED BY THE DEPARTMENT. THE DEPARTMENT IS BEFORE HONBLE ITAT AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME ITA NO. 108/DEL/2011 3 TAX (APPEALS) FOR EARLIER YEARS. IN VIEW OF THE AB OVE DISCUSSIONS, THE CLAIM OF EXEMPTION U/S 10A AMOUNTING TO ` 80,93,895/- IS DISALLOWED. 4. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ASSESSEE SUBMITTED THAT ITAT IN EARLIER YEARS DECIDED THE IS SUE IN FAVOUR OF THE ASSESSEE. IN THIS REGARD, IT WAS SUBMITTED THAT I TAT VIDE ITS ORDER DATED 11.9.2009 IN ITA NOS. 813, 3455, & 3456/DEL/20 08 FOR ASSESSMENT YEARS 2003-04, 2004-05 AND 2005-06 DISMIS SED THE APPEALS OF THE DEPARTMENT IN THIS REGARD. FURTH ERMORE, THE REVENUES APPEAL FOR THE ASSESSMENT YEAR 2006-07 HA S ALSO BEEN DISMISSED BY THE ITAT VIDE ITS ORDER DATED 26.9.2010 IN ITA NO. 2864/DEL/2009 FOR A.Y. 2006-07. FOLLOWING THE ABOVE PRECEDENT FROM THE ITAT, LD. COMMISSIONER OF INCOME TAX (APPEALS) HE LD THAT ACTION OF THE ASSESSING OFFICERS IN DISALLOWING DEDUCTIO N U/S 10A IS NOT APPROVED. 5. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. BOTH THE COUNS EL FAIRLY AGREED THAT THE ISSUE STANDS COVERED IN FAVOUR OF THE ASS ESSEE BY EARLIER DECISIONS OF THE ITAT IN ASSESSEES OWN CASE. LD. COUNSEL OF THE ASSESSEE STATED THAT HONBLE JURISDICTIONAL HIGH CO URT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2003-04, 2004-05, 200 5-06 AND 2006- 07 IN ITA NO. 1559/10, 1560/10, 1562/10 AND 1792/1 0, DISMISSED THE DEPARTMENT APPEALS AGAINST THE ORDER OF THE TRIBUNA L AND THE FACTS OF ITA NO. 108/DEL/2011 4 THE PRESENT CASE ARE IDENTICAL. ACCORDINGLY, WE D O NOT FIND ANY INFIRMITY OR ILLEGALITY IN THE ORDER OF THE LD. COMMI SSIONER OF INCOME TAX (APPEALS) IN THIS REGARD, HENCE, WE UPHOLD TH E SAME. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/6/2011 UPO N CONCLUSION OF HEARING. SD/- SD/- [A.D. JAIN] [A.D. JAIN] [A.D. JAIN] [A.D. JAIN] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 15/6/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES