Syncfusion Software (P) Ltd., CHENNAI V. ACIT, CHENNAI

ITA 559/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7624 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 17-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: DEEPAK JOHN
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , ! ' #! ' $ . %& ' () BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.559 /MDS./2015 ( / ASSESSMENT YEAR :2010-11) M/S. SYNCFUSION SOFTWARE (P) LTD., AJ-217,IV AVENUE, SHANTHI COLONY, ANNA NAGAR, CHENNAI 600 040. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-VI(4), CHENNAI 600 034. PAN AAJCS 0482 L ( *+ / APPELLANT ) ( ,-*+ / RESPONDENT ) / APPELLANT BY : MR.DEEPAK JOHN,ADVOCATE / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R / DATE OF HEARING : 17.03.2016 /DATE OF PRONOUNCEMENT : 30.03.2016 . / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)- 15, CHENNAI DATED 09.12.2014 PERTAINING TO THE ASSESSMENT YEAR 2010-11. ITA NO.559/MDS/2015 2 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WITH REGARD TO DENIAL OF EXEMPTION U/S.10B OF THE ACT. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE CLA IMED EXEMPTION U/S.10B OF THE ACT IN ITS RETURN OF INCOME. SINCE THE ASSESSEE HAS NOT PRODUCED ANY RATIFICATION GIVEN BY BOARD OF APPROVA L ON THE APPROVAL GRANTED BY THE DEVELOPMENT COMMISSIONER AS PER SEC. 10B OF EXPLANATION 2(IV) OF THE INCOME TAX ACT, THE LD. A SSESSING OFFICER FOLLOWING THE JUDGMENT OF DELHI HIGH COURT IN THE C ASE OF CIT VS. REGENCY CREATION LTD. & VALIANT COMMUNICATIONS LTD. REPORTED IN [2013] 353 ITR 326 (DEL.), DENIED THE CLAIM OF EXEM PTION U/S.10B OF THE ACT. ON APPEAL, THE LD.CIT(A) CONFIRMED THE O RDER OF THE LD. ASSESSING OFFICER DENYING THE EXEMPTION U/S.10B OF THE ACT. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. BEFORE US, THE ASSESSEE SUBMITTED THAT THE ASSE SSEE STARTED THE BUSINESS IN THE YEAR 2005 AS A SOFTWARE EXPORTE R AND THEREAFTER, THE ASSESSEE HAS BEEN AVAILING THE EXEMPTION U/S.10 B OF THE ACT SINCE 2005 AND THE SAME HAS BEEN ALLOWED BY THE DEP ARTMENT UP TO ASSESSMENT YEAR 2007-08. ACCORDING TO THE LD.A.R, THOUGH THEY ARE QUALIFIED U/S.10B OF THE ACT FOR ANY REASONS DOES N OT AVAILABLE TO THE ITA NO.559/MDS/2015 3 ASSESSEE FROM THE POINT OF VIEW OF THE REVENUE AUTH ORITIES, THE DEDUCTION U/S.10A MAY BE CONSIDERED IN VIEW OF THE DECISION OF DELHI HIGH COURT IN THE CASE OF CIT VS. TECHNOVATE E SOL UTIONS P. LTD. REPORTED IN [2013] 354 ITR 110(DEL.). HE ALSO RELI ED ON THE JUDGMENT OF TRIBUNAL IN THE CASE OF M/S.ANNAM SOFTWARE PVT. LTD. VS. ACIT IN ITA NO.2929/MDS./2014 VIDE ORDER DATED 15 TH MAY, 2015 AND ALSO THE ORDER OF TRIBUNAL, HYDERABAD BENCH IN THE CASE OF V NS MAKRO TECHNOLOGIES PVT. LTD. VS. DCIT IN ITA NO.579/MDS. /2012 DATED 08.06.2012. ON THE OTHER HAND, LD.D.R RELIED ON TH E ORDER OF THE LD.CIT(A). 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, THE ISSUE IN DISPUTE IS CO NSIDERED BY THE TRIBUNAL CITED SUPRA AND ALSO BY JURISDICTIONAL HIG H COURT IN THE CASE OF CIT VS. HEARTLAND KG INFORMATION LTD. (359 ITR 1 ). BEING SO, IF THE ASSESSEE IS DIS-ENTITLED FOR DEDUCTION U/S.10B OF T HE ACT, THE ALTERNATIVE CLAIM OF THE ASSESSEE U/S.10A OF THE AC T WILL HAVE TO BE CONSIDERED. IF THE ASSESSING OFFICER FINDS THAT TH E ASSESSEE FULFILLS ALL THE CONDITIONS REQUIRED FOR GRANTING OF EXEMPTION U /S.10A OF THE ACT, IT MAY BE GRANTED IN ACCORDANCE WITH LAW. WITH THIS O BSERVATION, WE ITA NO.559/MDS/2015 4 REMIT THE ISSUE TO THE FILE OF LD. ASSESSING OFFICE R FOR FRESH CONSIDERATION. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED ON WEDNESDAY, THE 30 TH OF MARCH, 2016 AT CHENNAI. SD/- SD/- ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) ( ( () * + ) ) ! CHANDRA POOJARI ', JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 30 TH MARCH,2016 . K S SUNDARAM. -.,, /0,10 /COPY TO: , 1. /APPELLANT 2. /RESPONDENT 3. , 2,!' /CIT(A) 4. , 2 /CIT 5. 034, 5 /DR 6. 4&,6 /GF