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

ITA 3139/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2425 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2015
• Court: TRIBUNAL
• Department Lawyers: RANDHIR GUPTA
• Section: 143(3); 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM ./ ITA NO. 3139 / MUM/20 1 5 ( / ASSESSMENT YEAR : 2007 - 2008 ) BOSTON ANALYTICS PVT. LTD., C/O. KALYANIWALLA & MISTRY ARMY & NAVY BUILDING, 3 RD FLOOR, 148, MAHATMA GANDHI ROAD, FORT, MUMBAI 400001 VS. DCIT 6(1)(2), MUMBAI PAN/GIR NO. : AACCB5871B APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI M M GOLVALA WITH MS. HETAL JAKHARIA REVENUE BY SHRI RANDHIR GUPTA DATE OF HEARING 27 /0 7 /2016 DATE OF PRONOUNCEME NT 24/10/ 2016 / O R D E R PER R.C.SHARMA (A.M) : 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. 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELA TES TO DEDUCTION U/S 10A WHILE COMPUTING BOOK PROFIT U/S 115JB, WHETHER AS PER NORMAL PROVISIONS OR AS PER MAT WORKING. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 4. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF BACK OFFI CE OPERATIONS BY WAY OF BUSINESS AND MARKET RESEARCH AND FINANCIAL BOSTON ANALYTICS PVT. LTD., 2 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 24 TH DECEMBER 2009 ACCEPTING THE RETURN, AS FILED. 5. 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 NO RMAL PROVISIONS INSTEAD OF AS PER MAT WORKING. THE ISSUE UNDER CONSIDERATION IS SQUARELY COVERED BY THE DECISION OF HONBL E SUPREME COURT IN THE FOLLOWING CASES: - I. AJANTA PHARMA LIMITED VS. CIT REPORTED (327 ITR 311) II. CIT VS, BHARI INFORMATION TECH SY STEMS (P) LTD., (340 ITR 593) 6. IN THE CASE OF BHARI INFORMATION TECH SYSTEMS (SUPRA) THE HONBLE 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 G OT 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. 7. 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 BOSTON ANALYTICS PVT. LTD., 3 COMPUTING BOOK PROFIT AS PER THE MAT WORKING AND NOT AS PER THE NORMAL PROVISIONS OF THE ACT. WE D IRECT ACCORDINGLY. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 24/10 /2016 S D/ - ( SANDEEP GOSAIN ) S D/ - ( R.C.SHARMA ) / JUDICIAL MEMB ER / ACCOUNTANT MEMBER MUMBAI ; DATED 24/10/ 201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//