Income Tax Appellate Tribunal - Hyderabad
Exxova Solutions (India) Pvt.Ltd., ... vs Acit, Cirlce-2(2), Hyd, Hyderabad on 26 April, 2017
ITA No 330 of 2016 Exxova Solutions India P Ltd Hyderabad
IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad ' A ' Bench, Hyderabad
Before Smt. P. Madhavi Devi, Judicial Member
AND
Shri B. Ramakotaiah, Accountant Member
ITA No.330/Hyd/2016
(Assessment Year: 2011-12)
M/s. Exxova Solutions Vs Income Tax Officer
(India) Private Limited Ward 2(1) Hyderabad
Hyderabad
PAN: AADCR 0499 L
For Assessee : Shri P. Murali Mohan Rao
For Revenue : Smt. Suman Malik, DR
Date of Hearing: 24.04.2017
Date of Pronouncement: 26.04.2017
ORDER
Per Smt. P. Madhavi Devi, J.M.
This is assessee's appeal for the A.Y 2011-12.
2. Brief facts of the case are that the assessee company which is engaged in the business of distribution of electronic goods and software development. It filed its return of income for the A.Y 2011-12 on 30.09.2011 admitting taxable income of Rs.1,57,07,000. During the assessment proceedings u/s 143(3) of the Act, the assessee was directed to furnish certain information. None appeared for the assessee and therefore, the assessment was completed u/s 144 of the Act. While considering the claim of deduction u/s 10A of the Act, the AO observed that the assessee has failed to produce necessary evidence such as (a) Report of an accountant u/s 92E in Form 3CEB; (b) Form 56F; (c) Foreign Page 1 of 3 ITA No 330 of 2016 Exxova Solutions India P Ltd Hyderabad Exchange Inward Remittance Certificate and (d) STPI registration and Softex Form. Therefore, the AO disallowed the deduction u/s 10A and brought it to tax. Aggrieved, the assessee preferred an appeal before the CIT (A) but did not file any details before him observing that the assessee has not fulfilled the mandatory requirement for claiming the deduction u/s 10A of the Act by not producing the relevant documents, the CIT (A) confirmed the disallowance of deduction u/s 10A of the Act. Aggrieved, the assessee is in second appeal before by raising the following grounds of appeal:
"1. The order of the learned CIT (A)-5 Hyderabad is erroneous both on facts and in law.
2. The learned CIT (A) erred in upholding the disallowance of claim of deduction made u/s 10A without considering the facts of the case.
3. The learned CIT (A) ought to have appreciated the fact that the assessee is in possession of complete information regarding claim made u/s 10A".
3. In support of the assessee's contention that the assessee is eligible for deduction u/s 10A of the Act, the assessee has filed the relevant documents as additional evidence before us. The learned Counsel for the assessee prayed that the Tribunal may now set aside the issue to the file of the AO for consideration in accordance with law after taking into consideration the additional evidence filed by the assessee.
4. The learned DR however, supported the orders of the authorities below.
Page 2 of 3ITA No 330 of 2016 Exxova Solutions India P Ltd Hyderabad
5. Having regard to the rival contentions and the material on record, we find that the assessee have filed all the relevant documents as additional evidence before us. It is not the case of the Revenue that the assessee is not eligible or that it is not carrying on the activity which is eligible for deduction u/s 10A of the Act but the disallowance is only because the assessee has not filed the relevant documents. Since the assessee has now filed all the relevant documents, we are inclined to admit the additional evidence and remand the issue to the file of the AO for verification and consideration in accordance with law.
6. In the result, assessee's appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 26th April, 2017.
Sd/- Sd/-
(B. Ramakotaiah) (P. Madhavi Devi)
Accountant Member Judicial Member
Hyderabad, dated 26th April, 2017.
Vinodan/sps
Copy to:
1 P. Murali & Co. CAs, 6-3-655/2/3, 1st Floor, Somajiguda, Hyderabad 500082 2 Income Tax Officer Ward 2(1) Hyderabad 3 CIT (A)-5 Hyderabad 4 Pr. CIT - 5 Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File By Order Page 3 of 3