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2019 (12) TMI 1183 - AT - Income TaxAddition u/s.145A - method of accounting followed - HELD THAT:- After going through the Audit Report that assessee has already considered the application of section 145A in the audit report and the practice of showing the working of inclusion of cess and excise duty on the purchases, sales and the stock is being followed by the assessee company since last several years. Section 145A requires the valuation of purchase and sale of goods or services and of the inventory shall be adjusted to include the amount of any tax, duty, cess or fee (by whatever have been called) actually paid or incurred by the assessee to bring the goods or services to the place of its location and condition as on date of valuation. In our considered opinion, assessee is following the same method for several years and therefore this ground of Revenue is dismissed. Deduction u/s. 10A - if the claim of deduction u/s. 10B is disallowed as assessee unit is included in the business of trading of Computers, Computer Peripherals, software development etc. and was granted license setting up 100% EOU under STP scheme as per letter of permission - HELD THAT:- Assessee has also filed copy of letter from STPI, Gandhinagar, Gujarat and assessee is reflecting on the website of Department of Electronics & Information Technology and assessee has also filed the copy of extract of the said website and which has not been disputed by the ld. A.O. and in the past, assessee has been claiming deduction u/s. 10A. Moreover, assessee company set up in the 100% EOU under STP Scheme as per letter of permission No. STPIG/EXIM/S/503/STTL-SWED/13 dated 2-1-2007 by the Designated officer Software and IT enabled services and same details were submitted before the lower authorities. The assessee is in this business since 2007 and company has been set up in the 100% EOU under STP Scheme and all details have been submitted before the lower authorities. Since assessee has complied with all the condition for availing of benefit of section 10A. Therefore, we dismiss this ground of the revenue. Allowing of foreign exchange gain in the claim of deduction u/s 10A - A.O. held that income due to foreign exchange gain are not eligible for deduction - HELD THAT:- Since already we have confirmed the order of the ld. CIT(A) for granting relief to the assessee u/s 10A of the Act. We draw support in favour of assessee from the latest judgment of Hon’ble Madras High Court in the matter of CIT Chennai- III vs Pentasoft Technologies Ltd. [2019 (9) TMI 155 - MADRAS HIGH COURT] wherein similar claim of the assessee was allowed by the Hon’ble Madras High Court. In the matter of Nuwave Esolutions Pvt. Ltd. vs. CIT (Delhi) [2018 (12) TMI 1752 - ITAT DELHI] has also granted relief to the assessee and granted deduction in foreign exchange gain. Therefore, in our considered opinion, assessee is eligible for exemption u/s. 10B of the Act and we do not find any reason to interfere in the order passed by the ld. CIT(A). - Decided against revenue.
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