RMSI Private Limited Vs ACIT (ITAT Delhi)
Deduction u/s 10A Restored After SC & HC Confirmation – AO Directed to Grant Benefit in Remand Proceedings
The Delhi ITAT allowed the assessee’s appeal for statistical purposes and directed the Assessing Officer to grant deduction under Section 10A in accordance with binding judicial precedents in the assessee’s own case. The Tribunal noted that this was the second round of litigation and that the issue regarding applicability of Section 10A(9) had already been conclusively settled in favour of the assessee by the ITAT, affirmed by the Delhi High Court and finally by the Supreme Court, which had dismissed the Revenue’s SLP.
Despite this settled position, the AO, in remand proceedings under Section 254, recomputed deductions under Section 80HHE by altering turnover figures and effectively denied the benefit of Section 10A. The Tribunal held that once Section 10A(9) stood omitted with effect from 01.04.2004 and the assessee’s eligibility had already been upheld up to the Supreme Court, the AO had no jurisdiction to deny the deduction again on the same grounds.
Accordingly, the Tribunal directed the AO to allow the deduction under Section 10A after verifying the relevant documents and submissions, reiterating that the matter was already settled by higher judicial forums. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
