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2019 (4) TMI 272 - AT - Income TaxDeduction u/s 10B - business of carrying out R & D activity on Functional Genomics, Bioinformatics and Chemistry and also trading in biotechnology tools and instruments - AO alleged that activity are on behalf of the AE in USA not eligible for deduction u/s 10B for Functional Genomics Division - Export Oriented Undertaking (EOU) - HELD THAT:- Basic form and content of the deliverables given by the assessee to the AE requires examination on the facts of the matter in the light of the recitals of the Research and Development Services Agreement entered into between the assessee and its AE and contradictory submissions put forward by the assessee before the authorities below. Such an examination has not been carried out by the authorities below - remand the issue back to the file of the AO for a proper, thorough and comprehensive examination of the facts related to the functions and activities of the assessee’s Functional Genomics Division and also examine the form, nature and content of the deliverables of this division and to then decide on the allowability of the assessee’s claim for deduction under section 10B - Ground of Revenue’s appeals for both Assessment Years 2008-09 and 2009-10 treated as allowed for statistical purposes. Deduction u/s 10A & 10AA computation - exclusion of certain expenses both from Export turnover as well as Total Turnover - HELD THAT:- We find no reason to interfere with or deviate from the finding rendered by the ld. CIT(A) on this issue with respect to the deduction under section 10A and 10AA of the Act, and therefore respectfully following the decision of the Hon'ble Apex Court in the case of CIT Vs. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] we uphold the impugned order of the learned CIT (Appeals)’s order allowing the assessee's claim for deduction under Section 10A and 10AA of the Act. Consequently, the grounds raised by revenue are dismissed.
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