DCIT, Coimbatore V. ABT Info Systems P Ltd., Coimbatore

ITA 480/CHNY/2015

• Counselvise Citation: 48021714 RSA 2015
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 14-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 09-03-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.480/MDS/2015 ( )( / ASSESSMENT YEAR : 2008-09 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, 63-A, RACE COURSE ROAD, COIMBATORE. V. M/S ABT INFOR SYSTEMS PVT. LTD., 2 ND FLOOR, KALIDAS ROAD, RAMNAGAR, COIMBATORE 641 009. PAN : AACCA 4475 G (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : DR. B. NISCHAL, JCIT -.+, / 0 / RESPONDENT BY : NONE ./ ITA NO.481/MDS/2015 ( )( / ASSESSMENT YEAR : 2008-09 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, 63-A, RACE COURSE ROAD, COIMBATORE. V. M/S RJN SOFTWARE PVT. LTD., 78, OM SAKTHI NAGAR, TRICHY ROAD, COIMBATORE 641 045. PAN : AADCR 0268 F (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : DR. B. NISCHAL, JCIT -.+, / 0 / RESPONDENT BY : SH. R. VIJAYARAGHAVAN, ADVOCATE 1 / 2% / DATE OF HEARING : 14.10.2015 3') / 2% / DATE OF PRONOUNCEMENT : 13.11.2015 2 I.T.A. NO.480/MDS/15 I.T.A. NO.481/MDS/15 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: BOTH THE APPEALS OF THE REVENUE ARE DIRECTED AGA INST THE RESPECTIVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, COIMBATORE, DATED 12.12.2014, RELATING TO TWO INDIV IDUAL ASSESSEES. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN BOTH THE APPEALS, WE HEARD BOTH THE APPEALS TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON ORDER. 2. DR. B. NISCHAL, THE LD. DEPARTMENTAL REPRESENTAT IVE, SUBMITTED THAT THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 10B OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') BE FORE THE ASSESSING OFFICER. THE SAME WAS REJECTED SINCE THE ASSESSEE HAS NOT OBTAINED NECESSARY APPROVAL FROM THE BOARD, AS REQU IRED UNDER THE PROVISIONS OF THE INCOME-TAX ACT. HOWEVER, THE CIT (APPEALS) HAS ALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSING OFF ICER. ACCORDING TO THE LD. D.R., THE ASSESSEE HAS NOT MADE ANY CLAI M UNDER SECTION 10A OF THE ACT BEFORE THE ASSESSING OFFICER. THERE FORE, THE ASSESSING OFFICER HAD NO OCCASION TO EXAMINE THE CL AIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT. IN FACT, IT WAS AN ALTERNATIVE 3 I.T.A. NO.480/MDS/15 I.T.A. NO.481/MDS/15 CLAIM MADE BY THE ASSESSEE BEFORE THE CIT(APPEALS). THEREFORE, THE CIT(APPEALS) OUGHT TO HAVE GIVEN OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE. SINC E SUCH AN OPPORTUNITY WAS NOT GIVEN, THE LD. D.R. SUBMITTED T HAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING O FFICER. 3. SH. R. VIJAYARAGHAVAN, THE LD.COUNSEL FOR THE AS SESSEE IN I.T.A. NO.481/MDS/2015, SUBMITTED THAT THE ALTERNAT IVE CLAIM UNDER SECTION 10A OF THE ACT WAS MADE BEFORE THE CIT(APPE ALS). IN FACT, THE CIT(APPEALS) REJECTED THE CLAIM OF THE ASSESSEE UNDER SECTION 10B OF THE ACT. AFTER CONSIDERING VARIOUS DECISION S ON THE ISSUE, INCLUDING THE DECISION OF THE SPECIAL BENCH OF THIS TRIBUNAL IN SCIENTIFIC ATLANTA INDIA TECHNOLOGY (P) LTD. V. ACI T (38 SOT 252), THE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO CALCULATE DEDUCTION UNDER SECTION 10A OF THE ACT. ON A QUERY FROM THE BENCH WHETHER ANY OPPORTUNITY WAS GIVEN TO THE ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT, THE LD.COUNSEL FOR THE ASSESSEE HAD FAIRLY SUBMITTE D THAT NO OPPORTUNITY WAS GIVEN TO THE ASSESSING OFFICER AND NO REMAND REPORT WAS CALLED FOR. 4 I.T.A. NO.480/MDS/15 I.T.A. NO.481/MDS/15 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ASSES SEE CLAIMED DEDUCTION UNDER SECTION 10B OF THE ACT BEFORE THE A SSESSING OFFICER. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE. IN FACT, THE CIT(APPEALS) CONCURRED WITH THE ORDER OF THE ASSESSING OFFICER IN RESPECT OF REJECTION OF CLAIM UNDER SECT ION 10B OF THE ACT. HOWEVER, BY CONSIDERING ALTERNATIVE CLAIM OF THE AS SESSEE UNDER SECTION 10A OF THE ACT, THE CIT(APPEALS) DIRECTED T HE ASSESSING OFFICER TO COMPUTE DEDUCTION UNDER SECTION 10A OF T HE ACT. WHEN A NEW CLAIM WAS MADE BEFORE THE CIT(APPEALS), THIS TR IBUNAL IS OF THE CONSIDERED OPINION THAT AN OPPORTUNITY SHOULD BE GI VEN TO THE ASSESSING OFFICER TO EXAMINE THE CORRECTNESS OF THE CLAIM. OTHERWISE, THE CIT(APPEALS) BEING AN AUTHORITY COTE RMINOUS WITH THAT OF THE ASSESSING OFFICER, HAS TO EXAMINE THE E LIGIBILITY OF THE ASSESSEE FOR DEDUCTION UNDER SECTION 10A OF THE ACT . THE CIT(APPEALS), BY PLACING RELIANCE ON CERTAIN CASE L AWS, DIRECTED THE ASSESSING OFFICER TO COMPUTE DEDUCTION UNDER SECTIO N 10A OF THE ACT. THE CIT(APPEALS) ADMITTEDLY HAS NOT GIVEN ANY OPPORTUNITY TO THE ASSESSING OFFICER. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ALTERNATIVE CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT HAS TO BE RE-EXAMINED BY THE ASSESSING O FFICER IN THE 5 I.T.A. NO.480/MDS/15 I.T.A. NO.481/MDS/15 LIGHT OF THE MATERIAL AVAILABLE ON RECORD. ACCORDI NGLY, THE ORDER OF THE LOWER AUTHORITY IS SET ASIDE AND THE ISSUE OF D EDUCTION UNDER SECTION 10A OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE TH E ISSUE AFRESH IN THE LIGHT OF THE MATERIAL AVAILABLE ON RECORD AND T HEREAFTER DECIDE THE CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT, IN ACCORDANCE WITH LAW, AFTER GIVING REASONABLE OPPORT UNITY TO THE ASSESSEE. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 13 TH NOVEMBER, 2015 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 13 TH NOVEMBER, 2015. KRI. 6 I.T.A. NO.480/MDS/15 I.T.A. NO.481/MDS/15 / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENTS 3. 1 92 () /CIT(A)-1, COIMBATORE 4. 1 92 /CIT -1, COIMBATORE 5. 7: -2 /DR 6. ( ; /GF.