Criteria to claim deduction u/s.10A and 10B of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘A’ NEW DELHI

BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT
&
SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER

ITA No.1859/DEL/2019
Assessment Year: 2011-12

M/s. Avalon BusinessAssociates,
F-31A, Moti Nagar, Delhi-110015
PAN: AAOFA4380M
Appellant 

Vs. 

ITO Ward 41(5)
New Delhi
Respondent

Assessee by Ms. Hasneeta Matta, CA
Sh. Mahesh Kumar, CA
Revenue by Sh. Ashok Gautam, Sr. DR

Date of hearing: 01.06.2021
Pronouncement on 04.06.2021

ORDER

PER K. NARASIMHA CHARY, JM

Aggrieved the order dated 01.01.2019 passed by the learned Commissioner of Income Tax (Appeals)-14, Delhi ("Ld. CIT(A)") confirming the order dated 30.01.2017 passed u/s.143(3) r.w.s. 263 of the Income Tax Act, 1961 ("the Act") by the ITO, Ward 41(5), Delhi ("AO"),  whereunder while disallowing the claim for deduction u/s.10B of the Act,the learned Assessing Officer assessed the income of the assessee at Rs.6,39,58,019/- as against the returned total income of Rs. NIL and raised a demand of Rs.2,68,77,750/-.

2. Brief facts of the case, as are relevant for the purpose of this appeal, are that the assessee is a partnership firm, having registered as a 100% Export- Oriented Undertaking (EOU) with the Software Technology Park (Noida) for the Development/Manufacture and Export of Computer Software/IT enabled services vide Letter of Permission No. STPIN/APP/1152020/201299/70562 dated 15.01.2010 ("LOP"); that subsequently, in terms of the applicable Foreign Trade Policy, an Agreement dated 26.03.2010 was entered between the appellant and the President of India acting through the Director, STPI Noida, while marking a copy of such agreement to the Dy Commissioner Customs & Central Excise, New Delhi.

3. For the assessment year 2011-12, assessee was allowed deduction under section 10 B of the Act to the tune of Rs. 6,37,26,747/-and the income was assessed at Rs. 2,31,272/-by order dated 5/3/2014 passed under section 143(3) of the Act. Such an order was, however, revised by the Ld. Principal Commissioner of Income Tax by order dated 22/3/2016 under section 263 of the Act and directing the Assessing Officer to consider the issues relating to the bank realisation certificate authenticating the nature of remittances stated to have been received in India and also the approval of the assessee by the board appointed by  the Central government in terms of explanation 2 (iv) of section 10B of the Act. 

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