Tieto India (P.) Ltd. Vs DCIT (ITAT Pune)
It was held that DRP’s direction to the AO for carrying out a fresh examination of the claim of the assessee u/s.10A of the Act is in violation of the clear mandate of the provisions of sub-section (8) of Section 144C and hence cannot be countenanced.
Facts of the case:
- The Assessee filed its return declaring total income of Rs.56,99,014/-, inter alia, claiming deduction u/s. 10B of the Act.
- Apart from the transfer pricing addition amounting to Rs.5.61 crore, the AO disallowed the claim of deduction u/s. 10B amounting to Rs.7,91,16,965/-.
- The Assessee approached the Dispute Resolution Panel (DRP) against the draft order. The DRP, vide its direction dated 15-12-2015, accepted the case of the Assessee qua the transfer pricing addition and directed to delete the same.
- In so far as the denial of deduction u/s 10B of the Act is concerned, the DRP found the action of the AO justified and held that there was no merit in the Assessee’s contention.
- It further entertained the alternate claim of the Assessee for granting of deduction u/s. 10A and vide para No.3.23 of its direction, required the AO to examine the alternate claim of the Assessee for eligibility of deduction u/s. 10A.
- The Revenue in its appeal is aggrieved by the direction given by the DRP for examining the claim of deduction u/s.10A. The Assessee is aggrieved by denial of claim u/s. 10A of the Act amounting to Rs.7,91,16,965/- by the AO in the final order passed pursuant to the direction given by the DRP.
Issue:
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