The Tax Publishers2019 TaxPub(DT) 0306 (Pune-Trib)

INCOME TAX ACT, 1961

Section 10B

Where there was no merit in order of AO in holding that assessee was not entitled to the deduction under section 10A and since assessee in written submissions had claimed the deduction under section 10B and not under section 10A, therefore, assessee was at liberty to raise the issue before AO or CIT(A) and matter was remanded back to AO for limited purpose of computing the said deduction in accordance with law.

Deduction under section 10B - Denial of deduction under section 10B - Alternate claim of assessee for deduction under section 10A -

Assessee was engaged in the business of development of computer software and claimed deduction under section 10B. AO alleged that assessee was not entitled to the said claim of deduction under section 10B as the requirement of section was that the assessee should be 100% Export-Oriented Unit (EOU). Consequently, the said deduction claimed by assessee was denied and profits from the said business were brought to tax. Assessee had furnished written submissions to the effect that in case deduction under section 10B was denied, then deduction under section 10A be allowed. AO denied the same to assessee. Held: Assessee was entitled to the alternate claim of deduction under section 10A. There was no merit in order of AO in holding that assessee was not entitled to the said deduction under section 10A, since assessee in written submissions had claimed the deduction under section 10B and not under section 10A . Assessee was at liberty to raise the issue before AO or CIT(A) and make fresh claim in this regard as held in CIT v. Pruthvi Brokers & Shareholders (P) Ltd. (2011) 349 ITR 336 (Bom-HC) : 2012 TaxPub(DT) 2671 (Bom-HC). Therefore, matter was remanded back to AO for limited purpose of computing the said deduction in accordance with law.

Relied:M/s. Himatsingka Seide Ltd. v. CIT in (Civil Appeal No. 1501 of 2008, dt.19-9-2013, : 2014 TaxPub(DT) 1103 (SC) Goetze (India) Ltd. v. CIT (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC) CIT v. Shelly Products & Anr. (2003) 261 ITR 367 (SC) : 2003 TaxPub(DT) 1281 (SC)Followed:CIT. Central-I v. M/s. Pruthvi Brokers & Shareholders (P) Ltd. (2011) 349 ITR 336 (Bom-HC) : 2012 TaxPub(DT) 2671 (Bom-HC)

REFERRED :

FAVOUR : In assessee's favour by way of remand.

A.Y. :



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