Case Law Details
PCIT Vs NTT Data Global Delivery Services Ltd (Delhi High Court)
1. Present Income Tax Appeal has been filed challenging the order dated 20th December, 2018 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.5196/Del./2014 for the Assessment Year 2009-10.
2. Learned counsel for the Appellant states that the ITAT has erred in holding that the incidental income of Rs.24,30,64,353/- of the assessee in the form of interest income is eligible for deduction under Section 10A of the Income Tax Act, 1961 (‘the Act’) without appreciating that as per the provisions of Section 10(A)(1) of the Act, only profits derived from the eligible undertaking will be entitled to deduction under Section 10A of the Act.
3. He submits that the ITAT has erred in following the decision of the Karnataka High Court in Commissioner of Income Tax vs Hewlett Packard Global Soft Ltd 299 CTR 118 (Karnataka) (FB) without considering that the Revenue has challenged the same before the Supreme Court and the said issue is pending adjudication in Civil Appeal No.9175 of 2018.
4. Having heard learned counsel for the Appellant, this Court finds that the issue raised in the present appeal is no longer res integra. In Principal Commissioner of Income Tax-1 vs. American Express India Pvt. Ltd., ITA No.749/2016, a Division Bench of this Court has held as under:-
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