TMI Blog2021 (9) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed the claim of deduction u/s 10A of the I.T.Act on the ground that the activities of the assessee does not constitute ITES. On appeal, the CIT(A) held the activities of the assessee constitute ITES and assessee was eligible for deduction u/s 10A. The activities of the assessee are in the nature of ITES and is eligible for deduction u/s 10A of the I.T.Act, the issue whether the activities of the assessee constitute ITES has attained finality. Accordingly, the concessional rate of FBT at 5% claimed by the assessee also stands upheld. Appeal filed by the assessee is allowed. - ITA No.814/Bang/2013 - - - Dated:- 1-9-2021 - Shri George George K, JM And Shri B.R.Baskaran, AM For the Appellant : Sri.K.R.Vasudevan, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court u/s 260A of the I.T.Act. The Hon ble High Court vide judgment dated 18.01.2021, set aside the order of the Tribunal in view of the Hon ble High Court judgment in ITA No.340/2014 (judgment dated 14.03.2014). Subsequent to the remand by the Hon ble High Court to the ITAT, the case was heard on 26.08.2021. 3. The learned AR submitted that the issue of eligibility of deduction u/s 10A of the I.T.Act has been finally held in favour of the assessee by the Hon ble High Court by answering question No.3 in favour of the assessee in ITA No.340/2014 (In income tax cases, the question of law No.3 was answered in favour of the assessee by holding that assessee is entitled to deduction u/s 10A of the I.T.Act). Therefore, it was submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is concerned, before proceeding further, it is apposite to take note of relevant extract of Section 10A(1) of the Act which reads as under:- 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. Thus, from perusal of the relevant extract of Section 10A(1), it is evident that the deduction under Section 10A of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the notification covers within its ambit even the services which cannot be sent abroad. Thus, the Tribunal has rightly held that the assessee is entitled to benefit of deduction under Section 10A of the Act. Thus, the third substantial question of law is also answered against the revenue and in favour of the assessee. 5.1 Since the Hon ble High Court had held that the activities of the assessee are in the nature of ITES and is eligible for deduction u/s 10A of the I.T.Act, the issue whether the activities of the assessee constitute ITES has attained finality. Accordingly, the concessional rate of FBT at 5% claimed by the assessee also stands upheld. It is ordered accordingly. 6. In the result, the appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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