M/S INDIUM SOFTWARE (INDIA) LTD, CHENNAI V. ACIT CORPORATE CIRCLE 3(2), CHENNAI

ITA 653/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7321 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 22-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN IRS
• Assessee Lawyers: S SRIDHAR

Judgement Text

, ( SMC) , IN THE INCOME TAX APPELLATE TRIBUNAL, A ( SMC) BENCH : CHENNAI . , [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT M EMBER ] ./I.T.A. NO. 653/CHNY/2018 / ASSESSMENT YEAR : 2010-2011. M/S. INDIUM SOFTWARE (INDIA) LTD. VDS HOUSE, 2 ND FLOOR, NEW NO.41, CATHEDRAL ROAD, CHENNAI 600 086. [PAN AAACI 6333F] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2(2) CHENNAI. ( !' / APPELLANT) ( #$!' /RESPONDENT) / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI. B. SAGADEVAN, IRS, JCIT. /DATE OF HEARING : 23-07-2018 !' /DATE OF PRONOUNCEMENT : 23-07-2018 % / O R D E R IN THIS APPEAL FILED BY THE ASSESSEE, WHICH IS D IRECTED AGAINST AN ORDER DATED 17.11.2017 OF LD. COMMISSION ER OF INCOME TAX (APPEALS)-13, CHENNAI, IT IS AGGRIEVED ON A DISALL OWANCE OF DEDUCTION CLAIMED U/S.10A OF THE INCOME TAX ACT, 1961 (IN SHO RT THE ACT) FOR THE IMPUGNED ASSESSMENT YEAR. 2. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESS EE WAS A EXPORT ORIENTED UNIT (EOU), EXPORTING SOFTWARE. AS PER THE LD. ITA NO.653 /CHNY/2018 :- 2 -: AUTHORISED REPRESENTATIVE, THOUGH THE ASSESSEE COMP ANY WAS INCORPORATED ON 12 TH APRIL, 1999, IT HAD STARTED MANUFACTURE AND PRODUCTION ONLY FROM THE PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR 2001-02. HOWEVER, AS PER THE LD. AUTHORISED REPRES ENTATIVE, LOWER AUTHORITIES HAD CONSIDERED ASSESSEE TO HAVE COMMEN CED PRODUCTION FROM 12 TH APRIL, 1999. SUBMISSION OF THE LD. AUTHORISED REPR ESENTATIVE WAS THAT LOWER AUTHORITIES HAD RECKONED YEAR ENDING 31.03.2000 AS FIRST YEAR OF ELIGIBILITY FOR DEDUCTION U/S.10A OF THE ACT. CONTENTION OF THE LD. AUTHORISED REPRESENTATIVE WAS THAT THE FIRS T YEAR OF PRODUCTION WAS YEAR ENDING 31.03.2001 AND IF FIRST YEAR WAS R ECKONED, AS ASSESSMENT YEAR 2001-02 IMPUGNED ASSESSMENT YEAR W OULD BE THE 10 TH YEAR. HOWEVER, AS PER THE LD. AUTHORISED REPRES ENTATIVE, LOWER AUTHORITIES HAVING TAKEN PREVIOUS YEAR 1999-2000 RE LEVANT TO ASSESSMENT YEAR 2000-2001 AS THE FIRST YEAR, THE CL AIM FOR DEDUCTION U/S.10A OF THE ACT WAS DENIED FOR THE IMPUGNED ASSE SSMENT YEAR. AS PER THE LD. AUTHORISED REPRESENTATIVE, LOWER AUTHOR ITIES WRONGLY RECKONED THE IMPUGNED ASSESSMENT YEAR TO BE THE EL EVENTH YEAR. HOWEVER, AS PER THE LD. AUTHORISED REPRESENTATIVE C ERTIFICATE DATED 29.11.2017 OF SOFTWARE TECHNOLOGY PARKS OF INDIA, M INISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA CLEARLY PROVED THAT FIRST YEAR OF OPERATION WAS 31.03.2001 RELEVANT TO ASSESSMENT YEAR 2001-02. LD. AUTHORISED REPRESENTA TIVE FAIRLY ITA NO.653 /CHNY/2018 :- 3 -: ADMITTED THAT CERTIFICATE FROM SOFTWARE TECHNOLOGY PARKS OF INDIA MENTIONED ABOVE COULD BE OBTAINED BY THE ASSESSEE ONLY AFTER LD. COMMISSIONER OF INCOME TAX (APPEALS) HAD ISSUED THE ORDER FOR THE IMPUGNED ASSESSMENT YEAR. ACCORDING TO HIM, THE CL AIM HAD TO BE CONSIDERED FOR THE IMPUGNED ASSESSMENT YEAR BASED O N THE CERTIFICATE ISSUED BY SOFTWARE TECHNOLOGY PARKS OF INDIA. 3. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE SUBMIT TED THAT THE QUESTION WHETHER ASSESSEE HAD STARTED OPERATION IN FINANCIAL YEAR 1999-2000 OR 2000-2001 COULD BE LOOKED INTO BY THE LD. ASSESSING OFFICER CONSIDERING THE FRESH EVIDENCE FILED BY THE ASSESSEE. 4. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. DEDUCTION U/S.10A OF THE ACT WAS DENIED TO THE ASSESSEE, CONSIDERING THE PREVIOUS YE AR RELEVANT TO THE IMPUGNED ASSESSMENT YEAR THE ELEVENTH YEAR FROM T HE YEAR OF COMMENCEMENT OF PRODUCTION /MANUFACTURE. HOWEVER, CONTENTION OF THE ASSESSEE IS THAT ITS FIRST YEAR OF OPERATION WA S YEAR ENDING 31.03.2001. FOR THIS RELIANCE, HAS BEEN PLACED CERT IFICATE DATED 29.11.2017 OF SOFTWARE TECHNOLOGY PARKS OF INDIA. ADMITTEDLY, THIS CERTIFICATE WAS NOT PLACED BEFORE THE LOWER AUTHOR ITIES, SINCE ASSESSEE OBTAINED IT ONLY ON 29.11.2017. TO MEET THE ENDS O F JUSTICE, I AM OF THE OPINION THAT ASSESSEES ELIGIBILITY TO CLAIM D EDUCTION U/S.10A OF THE ITA NO.653 /CHNY/2018 :- 4 -: ACT FOR THE IMPUGNED ASSESSMENT YEAR, NEEDS A FRESH LOOK BY THE LD. ASSESSING OFFICER. LD. ASSESSING OFFICER HAS TO CON SIDER THE CERTIFICATE OF SOFTWARE TECHNOLOGY PARKS OF INDIA PRODUCED BY T HE ASSESSEE BEFORE REACHING A CONCLUSION. ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE. QUESTION WHETHER ASSESSEE WAS ELIGIBLE FOR DEDUCTION U/S.10A OF THE ACT FOR THE IMPUGNED ASSESSMENT YEAR IS REM ITTED BACK TO THE FILE OF THE LD. ASSESSING OFFICER FOR CONSIDERATION AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSE. ORDER PRONOUNCED ON MONDAY, THE 23RD DAY OF JULY, 2018, AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED:23RD JULY, 2018 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,- / CIT(A) 5. )./ 0 / DR 2. / RESPONDENT 4. + / CIT 6. /12 / GF ITA NO.653 /CHNY/2018 :- 5 -: