ACIT 7(2)(1), MUMBAI V. MEDUSIND SOLUTIONS INDIA P.LTD, MUMBAI

ITA 6918/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1122 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 25-11-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: STUTI GHIA

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 6918 /MUM/ 201 6 (ASSESSMENT YEAR 20 1 1 - 1 2 ) ACIT 7(2)(1) ROOM NO. 573 5 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. MEDUSIND SOLUTION INDIA PVT. LTD. 6 TH FLOOR, THE GREAT OASIS, D - 13 STREET MIDC MAROL ANDHERI EAST MUMBAI - 400 093. ( APPELLANT ) ( RESPONDENT ) PAN NO . AADCM1806E ASSESSEE BY MISS STUTI GHIA DEPARTMENT BY M IS S BEENA SANTOSH DATE OF HEARING 2 . 5. 201 7 DATE OF PRONOUNCEMENT 2 .5 . 201 7 O R D E R THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 26.9.2016 PASSED BY THE LEARNED CIT(A) - 13, MUMBAI AND IT RELATES TO A.Y. 2011 - 12. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN HOLDING THAT DEDUCTIO N U/S. 10A OF THE ACT HAS TO BE ALLOWED BEFORE SETTING OFF OF BROUGHT FORWARD BUSINESS LOSS ES . 2. I HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE - COMPANY IS ENGAGED IN THE BUSINESS OF PROVIDING INFORMATION TECHNOLOGY ENABLED SERVICES. IT CLAIMED DEDUCTION U/S. 10A OF THE ACT IN RESPECT OF PROFITS GENERATED FROM ITS BUSINESS. HOWEVER, DEDUCTION WAS CLAIMED BY THE ASSESSEE WITHOUT SETTING OFF OF BROUGHT FORWARD BUSINESS LOSS OF EARLIER YEARS. THE ASSESSING OFFICER DID NOT AGREE WITH THE COMPUTATION OF THE ASSESSEE AND ACCORDINGLY ALLOWED DEDUCTION U/S. 10A OF THE ACT AFTER ALLOWING SETTING OFF OF BROUGHT FORWARD BUSINESS LOSS OF EARLIER YEARS. THE LEARNED CIT(A) AGREED WITH THE CONTENTIONS OF THE ASSESSEE AND ACCORDINGLY, BY FOLLOWING THE DECISION RE NDERED BY HON'BLE BOMBAY HIGH MEDUSIND S OLUTIONS INDIA PVT. LTD. 2 COURT IN THE CASE OF CIT VS. BLACK & VEATCH CONSULTING PVT. LTD. (348 ITR 72 ) AND ALSO DECISION RENDERED IN ASSESSEES OWN CASE FOR A.Y. 2006 - 07 IN ITA NO. 6703/MUM/2010 DATED 5.12.2010 , ALLOWED DEDUCTION U/S 10A WITHOUT SETT ING OFF OF THE BROUGHT FORWARD BUSINESS LOSSES . THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A). 3. AT THE TIME OF HEARING LEARNED AR SUBMITTED THAT THE DECISION RENDERED BY THE COORDINATE BENCH IN ASSESSEES OWN CASE FOR A.Y. 2007 - 08 HAS S INCE BEEN UPHELD BY HON'BLE BOMBAY HIGH COURT, VIDE ITS ORDER DATED 7.9.2016 PASSED IN ITA NO. 440/2014. SINCE THE DECISION RENDERED BY THE COORDINATE BENCH OF THE TRIBUNAL ON IDENTICAL ISSUE IN A.Y. 2007 - 08 HAS BEEN UPHOLD BY HON'BLE BOMBAY HIGH COURT A ND SINCE THE DECISION RENDERED BY THE LEARNED CIT(A) IS IN ACCORDANCE WITH THE SAME, I DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LEARNED CIT(A). ACCORDINGLY I UPHOLD HIS ORDER. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 2 . 5 . 201 7. SD/ - (B.R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 2 / 5 / 20 1 7 COPY OF T HE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI