M/s. Discoverture Solutions (India) Pvt. Ltd., Bhubaneswar V. DCIT, Corporate Circle- 1(1), Bhubaneswar

ITA 125/CTK/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1825 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reopening of assessment
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Assessment Year M/s. Discoverture Solutions (India) Pvt Ltd., E/48, Infocity, Chandrasekharpur, Bhubaneswar. PAN/GIR No. (Appellant Per Bench These are of the CIT(A),1, Bhubaneswar 17 and 0192/16 respectively . 2. Shri Ch.Satyajit Mishra, Ld AR appeared on behalf of the assessee and Shri S.C.Mohanty, ld Sr 3. In assessee’s appeals, the assessee has challenged two issues i.e. (i) action against the CIT(A) in confirming the denial of deduction u/s.10A of IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA Nos.125 & 126 /CTK/2020 Assessment Years : 2009-10 & 2010 M/s. Discoverture Solutions (India) Pvt Ltd., E/48, Infocity, Chandrasekharpur, Bhubaneswar. Vs. DCIT, Corporate Circle floor, Aayakar Bhavan, Bhubaneswar. No. (Appellant) .. ( Respondent Assessee by : Shri Ch. Satyajit Mishra Revenue by : Shri S.C.Mohanty, Addl. Date of Hearing : 19 /5/ 20 Date of Pronouncement : 19 / O R D E R These are appeals filed by the assessee against the of the CIT(A),1, Bhubaneswar both dated 16.4.2018 in 17 and 0192/16-17 for the assessment years 2009 Shri Ch.Satyajit Mishra, Ld AR appeared on behalf of the assessee and Shri S.C.Mohanty, ld Sr DR appeared on behalf of the revenue. In assessee’s appeals, the assessee has challenged two issues i.e. (i) action against the CIT(A) in confirming the denial of deduction u/s.10A of Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER /CTK/2020 10 & 2010-2011 DCIT, Corporate Circle-1(1), 3 rd floor, Aayakar Bhavan, Bhubaneswar. Respondent) Ch. Satyajit Mishra, AR Addl. CIT (DR) / 2022 /5/2022 filed by the assessee against the separate orders both dated 16.4.2018 in Appeal No.0191/16- s 2009-10 & 2010-11, Shri Ch.Satyajit Mishra, Ld AR appeared on behalf of the assessee DR appeared on behalf of the revenue. In assessee’s appeals, the assessee has challenged two issues i.e. (i) action against the CIT(A) in confirming the denial of deduction u/s.10A of ITA Nos.125 & 126 /CTK/2020 Assessment Years : 2009-10 & 2010-2011 Page2 | 4 the Act claimed by the assessee and (ii) that no assessment order having been passed originally on the return filed by the assessee, the reassessment is not permissible in view of the decision of the Hon’ble Supreme Court in the case of Trustees of H.E.H. The Nizam’s Supplemental Family Trust vs CIT, 242 ITR 381 (SC). 4. In respect of first issue, it was the submission of ld A.R. that the Assessing Officer had denied the assessee the benefit of deduction u/s.10A of the Act on the ground that the assessee was not functioning from Special Economic Zone as prescribed and required under section 10 of the Act. It was fairly agreed by ld AR that the issue had been decided against the assessee by the Tribunal on the same issue for the assessment year 2011- 12. It was the submission that the order of the Tribunal for assessment year 2011-12 confirming the denial of deduction u/s.10 of the Act was subjected matter of appeal before the Hon’ble Jurisdictional High Court of Orissa and the demand has also been stayed. It was the submission that he had no objection if the issue is restored to the file of the Assessing Officer for re-adjudication following the decision of Hon’ble Jurisdictional High Court of Orissa in assessee’s own case for the assessment year 2011- 12, once the order is received for the said assessment year. Ld AR drew our attention to pages 23 to 26 of PB, which is the copy of the order of Hon’ble Jurisdictional High Court in ITA No.3/17. Ld Sr DR did not raise any objection in regard to the issue being restored to the file of the AO to await ITA Nos.125 & 126 /CTK/2020 Assessment Years : 2009-10 & 2010-2011 Page3 | 4 the decision of the Hon’ble High Court in assesse’s own case for the assessment year 2011-12 in ITA No.3/17 and to complete the assessment for the impugned assessment years thereafter. 5. We have considered the rival submissions. As the issue of deduction u/s.10A is sub-judice before the Hon’ble Jurisdictional High Court in assessee’s own case for the subsequent assessment year being A.Y. 2011- 12, we are of the view that the interest of justice would be served if the issue is restored to the file of the AO for re-adjudication after receiving the decision of the Hon’ble Jurisdictional High Court in assessee’s own case for the assessment year 2011-12 and follow the same as would be directed by the Hon’ble High Court. Consequently, first issue taken in Ground Nos.1 & 2 is partly allowed for statistical purposes. 6. In regard to second issue as to whether the reopening can be done when the original assessment itself has not been completed, it is noticed that the return filed by the assessee has been processed and intimation in the form of acknowledgement of the return filed by the assessee has also been served on the assessee,. The intimation takes the form of assessment order. This being so, the assessment has been completed and reopening can validly be done. In these circumstances, the reopening of assessment is upheld. Consequently, Ground Nos.3 to 4 of the assessee’s appeals in respect of reopening stand dismissed. ITA Nos.125 & 126 /CTK/2020 Assessment Years : 2009-10 & 2010-2011 Page4 | 4 7. In the result, both the appeals are partly allowed. Order dictated and pronounced in the open court on 19 /5/2022. Sd/- sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 19 /05/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : M/s. Discoverture Solutions (India) Pvt Ltd., E/48, Infocity, Chandrasekharpur, Bhubaneswar 2. The Respondent. DCIT, Corporate Circle-1(1), 3 rd floor, Aayakar Bhavan, Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//