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2015 (10) TMI 488 - HC - Income TaxEligibility for exemption under Section 10A - Assessee is engaged in the business of software related services such as software design and development - Held that:- As rightly noted by the ITAT itself, this is not a case where any new claim for deduction under Section 10A of the Act has been made by the Assessee. This claim had been made in the original return itself. It is only the figure of profit that was changed in the revised computation as a result of wrongly showing a receipt in USDs without converting it into rupees. The ITAT has, in fact, remitted the matter back to the file of the AO to compute the deduction in accordance with law. The Court does not see any prejudice being caused to the Revenue as a result of the above directions. It is consistent with the law explained by this Court in the above decisions after considering the effect of the decision of the Supreme Court in Goetze (India) Ltd. (2006 (3) TMI 75 - SUPREME Court). Consequently, as regards the issue of the deduction under Section 10A of the Act, the Court declines to frame a question. - Decided against the Revenue Entitlement of the Assessee to the deduction under Section 80HHE - Assessee has established a Shared Service Centre (“SSC”) at Gurgaon for rendering information technology related services and business process management services for which it claimed deduction under Section 80 HHE - According to the AO, no deduction under Section 10A would be allowed to the Assessee either for the same or any subsequent assessment year since it had claimed deduction under Section 80HHE of the Act in AY 2000-01. - CIT (A) reversed the order of the AO and restored the matter to the file of the AO with the direction to allow the exemption under Section 10A also confirmed by ITAT - Held that:- The decisions of this Court in Commissioner of Income Tax v. Interra Software India (P) Ltd. (2010 (12) TMI 142 - DELHI HIGH COURT), Commissioner of Income-tax v. Damco Solutions (P) Ltd. [2010 (10) TMI 592 - DELHI HIGH COURT ] and Commissioner of Income Tax v. EDS Electronics Data Systems (India) (P) Ltd. (2012 (11) TMI 586 - DELHI HIGH COURT) answer the question in favour of the Assessee and against the Revenue. These decisions explain that the making of a claim under Section 80HHE of the Act in one assessment year will not preclude an Assessee from claiming the benefit under Section 10A of the Act in respect of the same unit in a succeeding assessment year. It was explained that the purpose of the Section 80HHE(5) of the Act was to avoid double benefit but that would not mean that if for a particular assessment year the Assessee wants to claim a benefit only under Section 10A of the Act and not Section 80HHE, that would be denied to the Assessee. - Decided against the Revenue
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