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2014 (11) TMI 1226 - AT - Income TaxReopening of assessment - Disallowance u/s 10A - business of development of computer software and export - assessee was running the activities since 1993 under SSI unit and hence the undertaking is not newly established undertaking as registered by Section 10A - Claim accepted earlier but withdrawn in subsequent assessment years - HELD THAT:- We find the claim of deduction u/s.10A was also allowed by the Revenue in summary assessment for the A.Y. 2004-05 and there was no scrutiny assessment u/s.143(3). There is also no dispute to the fact that after completion of the assessment for the impugned assessment year on 21-02-2013 the AO had reopened the assessments for A.Yrs. 2006-07, 2007-08 & 2008-09 by issuing notice u/s.148 on 25-032013 for all the three years. From the reasons recorded for issue of notice u/s.148 we find the reasons for such re-opening was on the basis of the finding of the AO for A.Y. 2010-11. However, we find the AO vide order dated 28-03-2014 has dropped such 147 proceedings for the above 3 years. Identical orders have been passed for A.Yrs. 2007-08 & 2008-09. From the above chronology of events, it is crystal clear that the claim of deduction u/s.10A of the assessee from A.Yrs. 2004-05 to 2009-10 have been allowed. Whether after allowing the deduction for 6 years can the AO deny the benefit of deduction u/s.10A in the 7th year, i.e. for the impugned assessment year? - We find an identical issue had come up before the Hon’ble Bombay High Court in the case of Western Outdoor Interactive Pvt. Ltd [2012 (8) TMI 709 - BOMBAY HIGH COURT] held that unless deduction allowed u/s.10A for the first assessment year is withdrawn, denial of exemption u/s.10A for subsequent years is impermissible. Thus claim of deduction u/s.10A cannot be denied to the assessee for the A.Y. 2010-11 since such deduction has been allowed to the assessee from A.Yrs. 2004-05 to 2009-10 - Decided in favour of assessee.
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