Brief about the case
The Delhi High Court Has Held In the case of Fast Booking (I) Pvt. Ltd. Vs Dy. Commissioner Of Income Tax that both the assessee as well as the department have a right to file an appeal/cross-objections before the Tribunal. The ITAT ought to have accepted the cross objections filed by the assessee. The benefit of Section 10B of the Act, the certification by the Board was mandatory and that such exemption could not be granted on the basis of the certificate issued by the Joint Director.
The assessee being in the business of software development had registered itself with the Software Technology Park of India (STPI), Noida. Further, the assessee claimed deduction u/s 10B on the basis of having been duly approved as a hundred percent export oriented unit (‘EOU’) by the Joint Director, STPI, Ministry of Communication and Information Technology, Government of India. The AO, however, disallowed the claim on the ground that certification of the assessee as EOU ought to have been by the statutory Board referred to in the Explanation to Section 10B of the Act and not by the Joint Director.
The assessee took up the matter to CIT (A) and got the decision in its favour.
The Revenue further took up the matter to the ITAT which denied the benefit of section 10B to the assessee. On subsequent knowledge of similar facts in other cases whereby deduction u/s 10A was admitted, the assessee then filed cross objections before the ITAT. The ITAT declined to permit the assessee to maintain the cross objections. Thereby, the assessee knocked the door of Delhi High Court which was of the view that ITAT was in error in declining to examine the cross objections filed by the appellant assessee.
Facts of the case:
