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2021 (12) TMI 803 - AT - Income TaxDeduction u/s 10A - Proof of new unit to set up - AO was of the view that though the approval for software technology Park has been taken however, the requisite condition as stipulated u/s 10A for claiming exemption does not satisfy even after considering the facts and documentary evidences submitted during the flash assessment proceedings - assessee has converted an existing export unit to an STPI unit with the same office premises, computers, and staff and mere purchase of new equipment, computers, and employing more staff will not prove the contentions that the new unit was set up - HELD THAT:- On careful examination of the details furnished before us we find that the assessee has set up a new unit, which was in different premises, it has a different staff, different nature of business, different service line. The assessee has also shown the setting up of the new business by showing us the various detailed contained in the financial records of the assessee such as invoices, its remittances, the existence of domestic unit earlier et cetera. The assessee has also shown the approval of the STPI unit dated 28th of March 2000, which states that there is a specific reference to the unit located at the new premises - The assessee has also shown the investment in the fixed assets separately maintained for STPI unit. We find that the no infirmity is pointed out. The conditions laid down were also shown to have been fulfilled for claiming deduction u/s 10 A of the act by the assessee. In view of this, we do not find any merit in the solitary ground raised by the learned assessing officer. Accordingly we uphold the order of the learned CIT – A and grant deduction u/s 10 A of the income tax act to the assessee. - Decided against revenue.
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