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2015 (1) TMI 110 - HC - Income TaxClaim of deduction u/s 10A - Unit B to treated as separate and independent unit or not Held that:- The intention of the Assessee was to claim Unit-B as a separate Unit - That is to enable it to extend the tax holiday of 10 years enjoyed by Unit-A and particularly when it was coming to an end in the AY 2005-06 - the nature of the business activities, location, lease agreement, layout plans and photographs of the premises Unit-B, which are all forming part of the order of the Commissioner and the remand report of the AO have been extensively referred to - The Tribunal concludes that all this material shows that Unit-B is a separate or an independent Unit - no contrary material was brought on record by the Departmental Representative or the Revenue before the Tribunal - The Tribunal has upheld the finding of fact of the Commissioner by concluding that merely because a new permission is obtained in relation to this Unit, containing reference to the original licence, that is not conclusive to demonstrate that the new Unit is a separate or independent Unit - The Software Technology Park is the broad identity of the area, but the Unit-B is held not to be expansion of the existing Unit-A, rather it is a separate or an independent Unit as such no substantial question of law arises for consideration Decided against revenue. Incomes by way of sales tax refund, liabilities required to be written back and profit on sale of assets are eligible incomes for computing deduction u/s 10A for Unit-A or not Held that:- There is some substance in the contention of assessee that if the deduction shall be allowed from the total income of the Assessee in the manner set out by section 10A and the computation is also provided in that provision itself namely sub-section 4, then there is a complete Code which is evolved and formulated by the Legislature relying upon The Commissioner of Income Tax-10 Versus Black & Veatch Consulting Pvt. Ltd. [2012 (4) TMI 450 - BOMBAY HIGH COURT] - Chapter VIA provides for deduction to be made in computing the total income and section 80HH deals with deduction in respect of profit and gains from the newly established undertaking or Hotel business in backward areas, then the attempt of the Revenue to telescope Chapter VIA in the context of the deduction, which is permissible under section 10A falling in Chapter III, cannot be countenance. Section 10A categorically clarifies that the profits derived from export of computer software, which is what is the activity shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such computer software bears to the total turnover of the business carried out by the Assessee - The Tribunal has, therefore, proceeded by relying upon the language of section 10A itself - once the expression "derived from" has been specifically defined in the same section, then the meaning of such expression as understood in common parlance will not be applicable - the view taken by the Tribunal and in upholding the conclusion of the Commissioner, is in consonance with the language of section 10A and also takes into consideration the relevant sub-section thereof namely sub-section 4 thereof, then it cannot be said that its conclusion or order is vitiated by any error of law apparent on the face of the record thus, no substantial question of law arises for consideration Decided against revenue.
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