ACIT-3(2) (1), MUMBAI V. M/S STATE STREET SYNTEL SERVICES P. LTD., MUMBAI

ITA 1961/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3882 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 01-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KASHYAP
• Keywords: Set aside
• Section: 143(3); 10AA

Judgement Text

, % ,& IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANOJ KUMAR AGGRAWAL, ACCOUNTANT MEMBER. . 1961 / / 2020 (. .2014-15 ) ITA NO. 1961/MUM/2020(A.Y.2014-15) . 1962 / / 2020 (. .2016-17 ) ITA NO. 1962/MUM/2020(A.Y.2016-17) ACIT-3(2)(1), ROOM NO.674, 6 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MK ROAD, MUMBAI 400 020 / VS. : / APPELLANT M/S. STATE STREET SYNTEL SERVICES PVT. LTD., B-101-104, DELPHI, HIRANANDANI BUSINESS PARK, POWAI, MUMBAI 400 096 PAN: AAICS-0964-Q : / RESPONDENT REVENUE BY : SHRI SANJAY KASHYAP ASSESSEE BY : NONE / DATE OF HEARING : 30/09/2021 / DATE OF PRONOUNCEMENT : 30/09/2021 / ORDER PER VIKAS AWASTHY, J.M: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGA INST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-18, MUMBAI (IN SHORT THE CIT(A)) FOR ASSESSMENT YEAR 2014-15 AND 2016-17, RESPECTIVELY. BOTH THE IMPUGNED ORDERS ARE OF EVEN DATE I.E. 18/02/2020. 2 ITA NO. 1961/MUM/2020(A.Y.2014-15) ITA NO. 1962/MUM/2020(A.Y.2016-17) 2. SINCE, IDENTICAL GROUNDS HAVE BEEN RAISED BY THE REVENUE IN BOTH THE APPEALS, THESE APPEALS ARE TAKEN UP TOGETHER FOR AD JUDICATION AND ARE DECIDED BY THIS COMMON ORDER. ITA NO.1961/MUM/2020-A.Y.2014-15: 3. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF AP PEAL: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE CIT(A) WAS JUSTIFIED IN THEIR FINDING THAT THE INTEREST INC OME EARNED BY THE ASSESSEE WOULD TANTAMOUNT TO PROFITS AND GAINS DERIVED FROM THE EX PORT OF SUCH ARTICLE (OR) THING AND THEREFORE WOULD QUALIFY FOR DEDUCTION U/S 10AA OF T HE ACT? 2. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) O N THE ABOVE GROUNDS BE SET ASIDE AND THAT OF ASSESSING OFFICER BE RESTORED. 4. SHRI SANJAY KASHYAP REPRESENTING THE DEPARTMENT SUBMITTED THAT THE ASSESSEE IS ENGAGED IN PROVIDING INFORMATION TECHNO LOGY ENABLE SERVICES(ITES). THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10AA O F THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') IN RESPECT OF ITS SPECIAL ECONOMIC ZONE(SEZ) UNITS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AS SESSING OFFICER OBSERVED THAT THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTI ON 10AA OF THE ACT ON INTEREST INCOME TREATING IT AS PROFITS DERIVED FR OM EXPORT OF ELIGIBLE SERVICES. THE ASSESSING OFFICER DISALLOWED ASSESSEES CLAIM O F DEDUCTION UNDER SECTION 10AA OF THE ACT IN RESPECT OF AFORESAID INTEREST IN COME. AGAINST THE ASSESSMENT ORDER DATED 26/12/2016 PASSED UNDER SECT ION 143(3) OF THE ACT, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) ALLOWED ASSESSEES CLAIM BY FOLLOWING THE ORDER OF TRIBUNAL IN ASSESSE ES OWN CASE IN ITA NO.7610/MUM/2011 FOR ASSESSMENT YEAR 2007-08 DECIDE D ON 06/01/2016. HOWEVER, LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY SUPPORTED THE ASSESSMENT ORDER. 3 ITA NO. 1961/MUM/2020(A.Y.2014-15) ITA NO. 1962/MUM/2020(A.Y.2016-17) 5. SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESENTAT IVE HEARD, ORDERS OF ORDERS OF AUTHORITIES BELOW EXAMINED. WE FIND THAT THE ISSUE RAISED IN PRESENT APPEAL BY THE REVENUE IS PERENNIAL. IN ASSESSMENT YEAR 2007-08, THE ISSUE WAS DECIDED BY THE CIT(A) IN FAVOUR OF THE ASSESSEE. T HE REVENUE CARRIED THE ISSUE IN APPEAL BEFORE THE TRIBUNAL. THE CO-ORDINATE BEN CH IN ITA NO.7610/MUM/2011(SUPRA), AFTER CONSIDERING THE FACT S CONCLUDED THAT THE INTEREST INCOME EARNED BY THE ASSESSEE HAD DIRECT N EXUS WITH THE ASSESSEES ITES BUSINESS, HENCE, ELIGIBLE FOR DEDUCTION UND ER SECTION 10A OF THE ACT. SIMILAR ISSUE HAD CROPPED UP IN ASSESSMENTS YEARS 2 008-09 TO 2012-13. THE CIT(A) DECIDED THE ISSUE IN FAVOUR OF ASSESSEE. T HE DEPARTMENT UNSUCCESSFULLY AGITATED THE ISSUE IN APPEAL BEFORE THE TRIBUNAL. TAKING A CONSISTENT VIEW THE TRIBUNAL ALLOWED ASSESSEES CLAIM OF DEDUCTION UNDE R SECTION 10AA OF THE ACT ON INTEREST INCOME BY FOLLOWING EARLIER ORDERS IN ASSESSEES OWN CASE. WE FIND NO INFIRMITY IN THE ORDER OF CIT(A) IN GR ANTING RELIEF TO THE ASSESSEE BY FOLLOWING THE ORDER OF TRIBUNAL IN ASSE SSEES OWN CASE IN PRECEDING ASSESSMENT YEARS. NO CONTRARY DECISION OR DISTINCT ION IN FACTS IN THE IMPUGNED ASSESSMENT YEAR HAS BEEN BROUGHT TO OUR NOTICE BY THE LD. DEPARTMENTAL REPRESENTATIVE. THE IMPUGNED ORDER WARRANTS NO INT ERFERENCE, HENCE, THE SAME IS UPHELD AND THE APPEAL OF THE REVENUE IS DIS MISSED BEING DEVOID OF ANY MERIT. ITA NO.1962/MUM/2020, A.Y.2016-17: 6. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY ADMIT TED THAT THE ISSUE RISED IN ASSESSMENT YEAR 2016-17 IS IDENTICAL TO THE ONE RAISED IN ASSESSMENT YEAR 2014-15. 4 ITA NO. 1961/MUM/2020(A.Y.2014-15) ITA NO. 1962/MUM/2020(A.Y.2016-17) 7. WE FIND THAT THE ISSUE GERMANE TO THE GROUNDS RA ISED IN ASSESSMENT YEAR 2006-17 IS IDENTICAL TO THE ONE DECIDED EARLIER BY THE TRIBUNAL IN ASSESSEES OWN CASE IN PRECEDING ASSESSMENT YEARS INCLUDING THE ONE DECIDED BY US IN APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 2014-15, HEREIN ABOVE. FOR PARITY OF REASONS APPEAL OF THE REVENUE FOR ASSESSMENT Y EAR 2016-17 IS DISMISSED BEING DEVOID OF ANY MERIT. 8. TO SUM UP, BOTH APPEALS BY THE REVENUE ARE DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, THE 30TH DAY OF SEPTEMBER, 2021. SD/- SD/- (MANOJ KUMAR AGGRAWAL) (VIKAS AWASTHY) & / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, ,'/ DATED: 30/09/2021 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. - / THE APPELLANT , 2. ./ / THE RESPONDENT. 3. 0/ ( )/ THE CIT(A)- 4. 0/ CIT 5. 12./' , . . . , / DR, ITAT, MUMBAI 6. 23456 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI