DCIT, CIRCLE-12(2), NEW DELHI V. INTERGLOBE TECHNOLOGY QUOTIENT PVT. LTD., NEW DELHI

ITA 6773/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0194 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 10-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ROHIT JAIN ADV SH ARPIT GOYAL
• Section: 10AA; 22; 10

Judgement Text

ITA NO. 6773/DEL/2017 INTERGLOBE TECHNOLOGY QUOTIEN T PVT. LTD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI G.S. PANNU, HONBLE VICE PRESIDENT & SHRI K.N. CHARY, JUDICIAL MEMBER ITA NO.-6773/DEL/2017 (ASSESSMENT YEAR:2014-15) DCIT , CIRCLE 12(2) ROOM NO. 410, C.R. BUILDING, NEW DELHI. VS. INTERGLOBE TECHNOLOGY QUOTIENT PVT. LTD., GROUND FLOOR, 124, CENTRAL WING, THAPAR HOUSE, JANPATH, NEW DLEHI. PAN NO. AABCI3241H APPELLANT RESPONDENT REVENUE BY MS. SUNITA SINGH, CIT DR ASSESSEE BY SH. ROHIT JAIN, ADV. SH. ARPIT GOYAL, CA DATE OF HEARING: 30 .12.2020 DATE OF PRONOUNCEMENT : 30 .12.2020 ORDER PER K. NARASIMHA CHARY, JM CHALLENGING THE ORDER DATED 25 1999-2000 17 IN APPE AL NO. 712/2016-17/CIT(A), PASSED BY THE LEARNED COMMISSIO NER OF INCOME TAX (APPEALS)-4, NEW DELHI (LD. CIT(A)), IN THE CASE OF M/S INTERGLOBE TECHNOLOGY QUOTIENT PVT. LTD (THE ASSESSEE) FOR T HE ASSESSMENT YEAR 2014- 15, REVENUE PREFERRED THIS APPEAL DISPUTING THE ALL OWING THE CLAIM OF RS. 62, 81, 45, 818/-TOWARDS DEDUCTION UNDER SECTION 10 AA OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) ON THE GROUND THAT THE LD. CIT(A) DID NOT ITA NO. 6773/DEL/2017 INTERGLOBE TECHNOLOGY QUOTIEN T PVT. LTD. 2 EXAMINE THE FACT WHETHER OR NOT THE ASSESSEE IS SAI D TO BE ENGAGED IN THE BUSINESS OF SOFTWARE EXPORT TO BE ELIGIBLE FOR DEDU CTION UNDER SECTION 10AA OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPA NY IS ENGAGED IN THE BUSINESS OF SOFTWARE DEVELOPMENT AND PROVIDES I NFORMATION TECHNOLOGY-ENABLED SERVICES FROM ITS UNIT LOCATED I N THE SEZ AREA, AND FOR THE ASSESSMENT YEAR 2014-15 THEY HAVE CLAIMED DEDUC TION OF AN AMOUNT OF RS. 62,81,45,818/- U/S 10AA OF THE ACT. 3. DURING THE ASSESSMENT PROCEEDING, IT WAS OBSERVED B Y THE AO THAT THE ASSESSEE HAS CLAIMED AN EXEMPTION OF RS. 62,81, 45,818/- U/S 10-AA OF THE I.T. ACT CLAIMING TO HAVE BEEN ENGAGED IN THE F IELD OF EXPORT OF DATA PROCESSING SERVICES DOING BUSINESS OF SOFTWARE DEVE LOPMENT & PROVIDING INFORMATION TECHNOLOGY ENABLED SERVICE FROM SPECIAL ECONOMIC ZONE, NOIDA AND THIS WAS THE 8 TH YEAR OF CLAIM U/S 10-AA, BUT SUCH CLAIM OF THE ASS ESSEE WAS DISALLOWED ON THE GROUND THAT IN ALL ASSESSMENT YEARS STARTING FROM 2007-08, SUCH A CLAIM WAS DISALLOWED. ACCORDING TO THE LEARNED ASSESSING OFFICER THE REASONS FOR DISALLOWING THE EXEMPTION C LAIMED U/S 10AA IN THE ASSESSMENT ORDERS PASSED FOR EARLIER ASSESSMENT YEA RS WERE FOUND TO BE VALID FOR THE AY 2014-15 ALSO. LEARNED ASSESSING OF FICER, THEREFORE, FOLLOWING THE EARLIER YEARS, HELD THAT THE ASSESSEE COMPANY DID NOT FULFIL THE CRITERIA FOR CLAIM OF EXEMPTION U/S 10AA OF THE ACT , AND ACCORDINGLY HE DISALLOWED THE CLAIM OF ASSESSEE AMOUNTING TO RS 62 ,81,45,818/- U/S 10AA. 4. ASSESSEE PREFERRED APPEAL AGAINST SUCH ORDER AND CO NTENDED THAT THE ASSESSEE HAD MET ALL THE CONDITIONS U/S 10AA. L D. CIT(A) HAVING CONSIDERED ALL THE FACTS OF THE CASE OBSERVED THAT HE HAD ALREADY DECIDED ITA NO. 6773/DEL/2017 INTERGLOBE TECHNOLOGY QUOTIEN T PVT. LTD. 3 THE ISSUE OF ALLOWABILITY OF DEDUCTION U/S 10AA IN THE FAVOUR OF ASSESSEE FOR ASSTT. YEAR 2012-13 VIDE ORDER DATED 31/08/2017 LD. CIT(A) ALLOWED THE APPEAL FOR THE ASSESSMENT YEAR 2014-15 ALSO. 5. THERE IS NO DISPUTE THAT THE ORDER OF THE LD. CIT(A ) FOR THE ASSESSMENT YEAR 2012-13 WAS BASED ON THE ORDER OF T HE TRIBUNAL IN ASSESSEES OWN CASE ON THE SAME ISSUE OF ALLOWABILI TY OF DEDUCTION UNDER SECTION 10AA FOR ASSESSMENT YEAR 2007-08 TO 2010-11 VIDE ORDER DATED 26 TH JULY 2016 IN ITA NO. 419/DEL/2011, 5830/DEL/2011, 1 463/DEL/2013 AND 6144/DEL/2013 IN WHICH IT HAS BEEN HELD THAT THE AS SESSEE IS ELIGIBLE FOR THE CLAIMED DEDUCTION UNDER SEC. 10AA OF THE ACT, 1961, AND SUCH FINDING OF THE TRIBUNAL WAS UPHELD BY HON'BLE JURISDICTIONAL HIGH COURT, DELHI IN THE CASE OF APPELLANT IN ITA NO. 330/2017 FOR AY 2010-11 VID E ORDER DATED 22 ND MAY, 2017. SINCE THE ISSUE IS IDENTICAL AND KEEPING IN THE CONSISTENT VIEW TAKEN BY THE TRIBUNAL AS UPHELD BY THE HONBLE JURISDICTI ONAL HIGH COURT IT CANNOT BE SAID THAT THE ORDER OF THE LD. CIT(A) SUFFERS AN Y ILLEGALITY OR IRREGULARITY SO AS TO INVITE OUR INTERFERENCE IN THIS APPEAL. SINCE THE LD. CIT(A) FOLLOWED THE BINDING PRECEDENT WE UPHOLD THE SAME AND CONSEQUENT LY FIND THAT THE APPEAL IS DEVOID OF MERITS. 6. APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT IMMEDIATELY AFTE R THE CONCLUSION OF THE HEARING IN THE VIRTUAL COURT ON 3 0/12/2020. SD/- SD/- (G.S. PANNU) (K. NARSIMHA CHAR Y) VICE PRESIDENT JUDICIAL MEMBER DATED: 30/12/2020 *KAVITA ARORA, SR. PS ITA NO. 6773/DEL/2017 INTERGLOBE TECHNOLOGY QUOTIEN T PVT. LTD. 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI