The Income Tax Appellate Tribunal (ITAT), Pune Bench granted deduction u/s 10B of The Income Tax Act, 1961 on registration with Software Technology Park of India(STPI) as 100% Export Orient Unit (EOU) thereby granting Relief to HSBC Software Development (India) Pvt. Ltd.
The assessee company, HSBC Software Development (India) Pvt. Ltdderived profits from unit registered under Software Technology Park of India as a 100% Export Orient Unit (‘EOU’). The unit at Pune was granted approval by the Director, STPI as 100% EOU vide approval letter dated March, 26, 2002 whereas unit at Hyderabad was granted approval by the Director, STPI as 100%EOU vide approval letter dated May 16, 2006. Therefore, the unit at Pune has been claiming the deduction u/s 10B of the Act since A.Y. 2003-04 and unit at Hyderabad has been claiming deduction u/s 10B of the Act since A.Y. 2007-08.
The assessee company submitted that the registration with STPI is equivalent to an approval envisaged under the above said Explanation. The Assessing Officer, during the course of assessment proceedings, examined the claim and satisfied himself as to fulfilment of the conditions precedent for claiming deduction u/s 10B, had allowed the deduction u/s 10B of the Act.
During the course of proceedings before the CIT(A), it was held that the appellant was not eligible for deduction u/s 10B in the absence of an approval by the Board appointed by the Central Government under this section 14 of Industrial Development and Regulations Act, 1951. Aggrieved the assessee is in appeal before the Tribunal.
A bench consisting of Inturi Rama Rao, Accountant Member and SS Viswanethra Ravi, Judicial Member held that “We are of the considered opinion that the assessee is entitled for deduction u/s 10B of the Act, on registration with STPI as 100% EOU.”
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