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2015 (4) TMI 589 - AT - Income TaxDisallowance of claim of deduction u/s.10A in respect of Unit No.2 & 3 - Held that:- From the record we found that assessee is engaged in the business of IT Enabled services. In its computation of total income for the Asst. Year 2005-06, the it had claimed the exemption under section 10A of ₹ 124,179,095 for Unit II and of ₹ 383,205,319 for Unit III. No exemption has been claimed in respect of Unit 1. Unit-2 is engaged in non-voice BPO business (Insurance claim processing) whereas Unit-3 is engaged in voice BPO (Call Center). Units 2 and 3 were set-up in June 2000 and November 2001 respectively and accordingly the assessee started claiming exemption under section 10A in respect of each of these units from AYs 2001-02 and 2002-03 respectively. We also found that during the appellate proceedings, the CIT(A) has called a remand report from the AO, wherein the AO has categorically observed that assessee was engaged in its business activity in respect of its Units No.2 & 3 during previous year relevant to assessment year commencing on or after 1st April, 1994, therefore, the condition was fulfilled. The AO also observed that the Unit No.II & III have not been formed by splitting up or reconstruction of an existing business and are not formed by the transfer to a new business of machinery or plant previously used for any purpose. It is crystal clear from the remand report of AO that the units II and III fulfilled all the conditions prescribed under the relevant provisions of section 10A of the Act. Accordingly, we direct the AO to allow assessee's claim for deduction u/s.10A(2) of the Act in respect of Unit II and III.- Decided in favour of assessee. Disallowance made u/s.14A - Held that:- We direct the AO to compute the disallowance u/s.14A, in terms of directions issued by the Tribunal in assessee's own case [2013 (9) TMI 116 - ITAT MUMBAI], wherein the tribunal has directed the AO to consider all the materials placed by the assessee before it while computing disallowance u/s.14A of the Act. We direct accordingly. - Decided in favour of assessee for statistical purposes.
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