Income Tax Appellate Tribunal - Delhi
Dcit, New Delhi vs M/S Opera Solutions Management ... on 12 April, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH 'E' : NEW DELHI)
BEFORE HON'BLE PRESIDENT, SHRI G.D. AGRAWAL
and
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No.5983/Del./2015
(ASSESSMENT YEAR : 2010-11)
ITA No.4828/Del./2016
(ASSESSMENT YEAR : 2011-12)
DCIT, Circle 19 (1), vs. M/s. Opera Solutions Management
New Delhi. Consulting Services Pvt. Ltd.,
5th & 6th Floor, Building - B,
ETT - 1, Sector 16A,
Nodia - 201 301.
(PAN : AABFO4383R)
(APPELLANT) (RESPONDENT)
ASSESSEE BY : Shri Anil Bhalla, Advocate
REVENUE BY : Shri S.R. Senapati, Senior DR
Date of Hearing : 05.04.2018
Date of Order : 12.04.2018
ORDER
PER KULDIP SINGH, JUDICIAL MEMBER :
Since common questions of facts and law have been raised in both the aforesaid appeals, the same are being disposed of by way of consolidated order to avoid repetition of discussion.
2. The appellant, Deputy Commissioner of Income-tax, Circle 19 (1), New Delhi (hereinafter referred to as 'the Revenue') by 2 ITA No.5983/Del./2015 ITA No.4828/Del./2016 filing the present appeals, sought to set aside the impugned orders dated 14.08.2015 & 30.06.2015 passed by Ld. CIT(Appeals)-7, New Delhi qua the assessment years 2010-11 & 2011-12 respectively on the grounds inter alia that :-
ITA NO.5983/DEL/2015 (AY 2010-11) "On the facts and in the circumstances of the case, the ld. CIT (A) erred in allowing the exemption u/s 10A of Rs.1,99,69,618/-
which was disallowed by the AO to the assessee company since the assessee is not fulfilling the conditions laid down in clause
(ii) and (iii) of sub-section (2) of section 10A of the Income Tax Act, 1961."
ITA NO.4828/DEL/2016 (AY 2011-12) "On the facts and circumstances of the case and under the law, the ld. CIT (A) has erred in allowing the exemption u/s 10A of Rs.3,64,00,470/- which was disallowed by the Assessing Officer to the assessee company since the assessee is not fulfilling the conditions laid down in clause (ii) and (iii) of sub-section (2) of section 10A of the Income Tax Act, 1961."
2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee company is registered as STPI Unit. During the year under assessment, it has claimed deduction of RS.1,99,69,118/- & Rs.3,64,00,470/- under section 10A of the Income-tax Act, 1961 (for short 'the Act') on its export turnover for AYs 2010-11 & 2011-12 respectively. AO, declining the contentions raised by the assessee company, disallowed the same on the ground that the conditions required to be verified u/s 10A(2)(b) has not been satisfied by the assessee company. 3 ITA No.5983/Del./2015
ITA No.4828/Del./2016
3. Assessee company carried the matter before the ld. CIT (A) by way of filing appeals who has deleted the disallowance made by the AO by allowing the appeals. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeals.
4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.
5. Undisputedly, the assessee company is registered as STPI Unit and has been regularly claiming deduction u/s 10A which have already been allowed for AYs 2007-08, 2008-09 & 2009-10. It is also not in dispute that in AY 2008-09, CIT (A) had deleted the disallowance made by the AO against which no appeal has been filed by the Revenue.
6. AO disallowed the deduction for AY 2010-11 on the ground that approval under STPI Unit was obtained subsequently to the commencement of the production in previous year relevant to AY 2007- 08 i.e. production was commenced on 15.05.2006 and approval from STPI was obtained on 08.12.2006.
7. When it is not in dispute that the assessee company has claimed deduction u/s 10A for AY 2007-08 only qua the sales made after approval of the STPI Unit and no deduction was 4 ITA No.5983/Del./2015 ITA No.4828/Del./2016 claimed prior to the STPI registration, no disallowance on this score can be made. But the AO has disallowed the deduction u/s 10A by following the order passed for AY 2009-10 in which similar deduction was disallowed. However, in the face of admitted fact on the file that in AY 2009-10, assessee approached CIT (A) by filing the appeal who has allowed the deduction u/s 10A of the Act which order has not been further challenged by the Revenue and the deletion of disallowance by the ld. CIT (A) needs no interference.
8. The ld. CIT (A) after considering the aforesaid facts and circumstances of the case and in the light of the settled principle of law came to the conclusion that the assessee company which has obtained STPI approval on 08.12.2006 is eligible for deduction u/s 10A in respect of the export sales in assessment year under consideration by following the rule of consistency. In these circumstances, we find no illegality or perversity in the impugned order passed by the ld. CIT (A). Consequently, both the appeals filed by the Revenue are hereby dismissed.
Order pronounced in open court on this 12th day of April, 2018.
Sd/- sd/-
(G.D. AGRAWAL) (KULDIP SINGH)
PRESIDENT JUDICIAL MEMBER
Dated the 12th day of April, 2018/TS
5 ITA No.5983/Del./2015
ITA No.4828/Del./2016
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT-7, New Delhi.
5.CIT(ITAT), New Delhi. AR, ITAT
NEW DELHI.