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2020 (4) TMI 453 - AT - Income TaxDeduction u/s 10A - disallowance of claim of deduction u/s 35D - Whether any disallowance u/s 35D of the Act would go to increase the profit of the business of the assessee and deduction u/s.10A of the Act had to be allowed on such enhanced profits? - CIT(A) in directing the AO to compute the capital employed by treating the FCCB also as part of the capital employed - HELD THAT:- Tribunal in assessee’s own case [2015 (9) TMI 556 - ITAT BANGALORE] has taken a view that for the purpose of computing the capital employed for allowing deduction u/s 35D of the Act, the FCCBs should also be taken into consideration. The grievance projected by the Revenue in its appeal is that the decision of the Tribunal has not been accepted by the Revenue and a further appeal to the Hon’ble High Court is being preferred. We are of the view that the fact that the revenue has preferred appeal against the order of Tribunal is ground no ground not to follow the decision in assessee’s own case, especially when the decision of the Tribunal has not been so far reversed by any higher forum. Accordingly, we find no merit in the appeal by the revenue and the same is dismissed. Disallowance of deduction u/s 35D of the Act would go to increase profit of the business on which deduction u/s 10A of the Act was to be allowed to the assessee. - Following the decision in the case of M/s Eka Software Solutions Pvt.Ltd., Vs DCIT [2020 (1) TMI 1182 - ITAT BANGALORE], decided in favor of assessee.
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