TMI Blog2018 (3) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the rival submissions. The assessee has taken similar plea before the CIT(A) and the CIT(A) after examining the submissions and relevant material and the Explanation u/s 147, has recorded a finding that on the impugned issue the AO has not formed any opinion at the time of original assessment, hence there is no change of opinion and upheld the action of the AO. Since, the assessee has not laid any material to refute such findings, we do not find any infirmity in the order of the CIT(A) - I.T.A. No. 2758/Mds/2016 - - - Dated:- 1-2-2018 - Shri Duvvuru Rl Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Shri. S. Ramesh, FCA And Mrs.Jharna B. Harilal, FCA For the Respondent : Shri. N. Madhavan, Addl. CIT ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-1, Chennai in ITA No. 201/15-16 dated 27.06.2016 for assessment year 2009-10. 2. M/s. Aspire Systems (India)Pvt. Ltd., the assessee, is engaged in the business of software development. It filed its return of income for ay 2009-10 on 30.09.2009 claiming deduction u/s 10A. On sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10A eligibility was already considered during regular assessment and reopening the case on the same set of grounds is merely a change in opinion. 3. The AR submitted that the assessee is a private limited company, engaged in the business of software development and provides complete lifecycle services, ranging from new product development, product advancement to product migration, re-engineering, sustenance and support. He invited our attention to the sequence of events since the date of incorporation, the relevant portions are extracted as under : S.No Particulars Date/FY Remarks 1 Date of incorporation 04/08/1998 Falls in AY 1999-2000. 2 Year of commencement of development of software FY 1999- 2000 Falls in AY 2000-2001 3 Date of filing application before STPI 25/02/2000 Falls in AY 2000-2001. 4 Date of STPI approval 23/03/2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue after considering the facts involved in the additions made by the Assessing officer. 9 30th March, 2015 Order u/s. 143(3) r.w.s. 147 was passed disallowing the claim of deduction u/s. 10A. 3.1 The AR submitted that the assessee started its undertaking on 04.08.1998 relevant to assessment year 1999-2000, was engaged in the business of software re-selling and service in web hosting and related consultancy services up to financial year 1999-2000. During the year 2000 only, it ventured into development of software and related operations and also got registered with STPI as a 100% EOU for the purpose of export of software and allied services ie in the assessment year 2000-01. Further, it had obtained import licence on 29th March, 2000 for the purpose of export and consequently commenced its operations of exports. In other words, the assessee ventured into the operation of manufacturing software from assessment year 2000-01only which is also evident from the financials for the assessment years 1999-2000 and 2000-01, as reflected in the P L account for the year ended 31.03.2000, which is extracted as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see came into existence on 04.08.1998 and was doing domestic business, during the year 2000 only it ventured into development of software and related operations . Further, it got registered with STPI as a 100% EOU for the purpose of export of software and allied services in the assessment year 2000-01. Further, it had obtained import licence on 29th March, 2000 for the purpose of export and consequently commenced its operations of exports. In other words, the assessee ventured into the operation of manufacturing software from assessment year 2000-01 only. Now, let us examine section 10A which is extracted as under : Special provision in respect of newly established undertakings in free trade zone, etc. 10A. (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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