ITO, New Delhi V. M/s. Interglobe Technology Quotient Pvt. Ltd., New Delhi

ITA 5394/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4040 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 01-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAIFALI SWAROOP
• Section: 10AA

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH C, NEW DELHI BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5394/DEL./2014 ASSESSMENT YEAR: 2011-12 INCOME - TAX OFFICER, WARD 11(4), NEW DELHI. (APPELLANT) VS. INTERGLOBE TECHNOLOGY QUOTIENT PVT. LTD., GROUND FLOOR, 124, CENTRAL WING, THAPER HOUSE, JANPATH, NEW DELHI. PAN AABCI3241H (RESPONDENT) APPELLANT BY SMT. SHAIFALI SWAROOP, CIT/DR RESPONDENT BY SH. AJAY VOHRA, SR. ADVOCATE & SH. ADITYA VOHRA, ADVOCATE ORDER PER L.P. SAHU, A.M.: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 31.07.2014 FOR THE ASSESSMENT YEAR 2011-12 ON THE SOLITARY GROUND WHICH READS AS UNDER: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING AN ADDITION OF RS.92,02,24,773/- MADE ON ACCOUNT OF DISALLOWANCE OF DEDUCTION CLAIME D U/S. 10AA. 2. FROM THE ABOVE GROUND OF APPEAL, IT EMERGES OUT THAT THE SOLITARY QUESTION, WHICH NEEDS TO BE ADJUDICATED BY US IS WH ETHER THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S. 10AA OF THE IT ACT OR N OT IN THE ATTENDING FACTS AND CIRCUMSTANCES OF THE CASE. DATE OF HEARING 10.01.2018 DATE OF PRONOUNCEMENT 15 .01.2018 ITA NO. 5394/DEL./2015 2 3. THE LD. DR RELIED ON THE ORDER OF THE ASSESSING OFFICER AND SUBMITTED THAT THE LD. CIT(A) WAS NOT JUSTIFIED TO DELETE THE IMPUGNED ADDITION IGNORING THE FACT THAT THE ASSESSEE HAD DEPLOYED MUCH LESSER NUMBER OF EMPLOYEES AND COMPUTERS IN ITS SEZ UNIT AT NOIDA AS COMPARED TO O THER UNITS AND THAT THE ASSESSEE WAS ENGAGED IN THE ACTIVITY OF EARNING COM MISSION FROM A FOREIGN COMPANY IN THE GARB OF EXPORT FROM THE SEZ UNIT. 4. ON THE OTHER HAND, THE LD. AR OF THE ASSESSEE SU BMITTED THAT THE ASSESSING OFFICER HAD BASED ITS DECISION MAINLY ON THE OBSERVATIONS MADE IN A. YRS. 2007-08 TO 2010-11 IN THE ASSESSMENTS OF THE A SSESSEE. IT WAS SUBMITTED THAT SUCH ADDITIONS MADE BY THE ASSESSING OFFICER I N THE PRECEDING ASSESSMENT YEARS, STOOD DELETED BY THE THEN FIRST APPELLATE AU THORITY IN 2008-09 TO 2010- 11 AND THESE ORDERS HAVE RIGHTLY BEEN FOLLOWED BY T HE LD. FIRST APPELLATE AUTHORITY WHILE DELETING THE IMPUGNED ADDITION. IT IS FURTHER SUBMITTED THAT THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES O F THE CASE IN HAND AND THE HONBLE JURISDICTIONAL HIGH COURT IN APPEAL OF THE REVENUE IN THE CASE OF ASSESSEE ITSELF FOR A.Y. 2008-09 (395 ITR 659) HAS HELD THE ASSESSEE ELIGIBLE FOR SIMILAR DEDUCTION U/S. 10AA IN ITA NO. 330 OF 2 017 VIDE ORDER DATED MAY 22, 2017. THIS DECISION HAS FURTHER BEEN FOLLOWED B Y HONBLE JURISDICTIONAL HIGH COURT IN APPEALS OF THE REVENUE IN THE CASES O F ASSESSEE FOR A.YRS. 2007- 08, 2008-09 AND 2010-11 VIDE COMMON ORDER DATED 30 TH MAY, 2017. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE ENTIRE MATERIAL AVAILABLE ON RECORD, WE FIND THAT THE ISSU E INVOLVED IN THIS APPEAL IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE ITA NO. 5394/DEL./2015 3 DECISIONS OF HONBLE JURISDICTIONAL HIGH COURT IN T HE CASES OF ASSESSEE ITSELF FOR A.YRS. 2007-08, 2008-09, 2009-10 AND 2010-11, AS NO TED ABOVE. THEREFORE, RESPECTFULLY FOLLOWING THE DECISIONS OF HONBLE JUR ISDICTIONAL HIGH COURT, WE FIND NO REASON TO INTERFERE WITH THE ORDER REACHED BY THE LD. CIT(A) IN THE PRESENT CASE. ACCORDINGLY, THE APPEAL OF THE REVENU E IS FOUND TO HAVE NO MERITS AND IS LIABLE TO FAIL. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2018. SD/- SD/- (BHAVNESH SAINI) (L.P. SA HU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15.01.18 *AKS* COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI