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2022 (3) TMI 648 - AT - Income TaxDisallowance u/s. 10A - excess deduction u/s. 10A - Revenue is against the deletion of disallowance u/s. 10A Bby CIT-A ignoring the connected provisions of section 80IA(10) of the Act - assessee is a 100% Export Oriented Unit under STPI scheme and a wholly owned subsidiary of Romax Technology Ltd., UK. - HELD THAT:- AO's calculation of excess deduction u/s. 10A is based on the Arm's Length price based profit of the IT Enabled service rendered vis-à-vis the assessee's actual profit from such services. It is pertinent to mention that the assessee's Associated Enterprises, namely, Romax Technology Ltd., UK is not chargeable to tax in India - assessee offered suo motu higher income in its hands, which was albeit deductible u/s. 10A, without conferring any corresponding benefit to its AEs in terms of higher deduction of expenditure. AR brought to our notice an order passed in Honeywell Automation India Limited. [2021 (6) TMI 172 - ITAT PUNE] in which the case of excessive deduction made by the AO u/s. 10A(7) read with section 80IA(10), similar to the one under consideration, was disapproved. The ld. DR fairly conceded that the facts and circumstances of the instant case are mutatis mutandis similar to the Honeywell Automation India Limited and Another (supra). Respectfully following the precedent, accord my imprimatur to the order passed by the ld. CIT(A). - Decided against revenue.
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