Case Law Details
Brief of the Case
The Delhi High Court held in the case of E-Funds International India Private Limited v. PR. CIT, while dismissing the appeals of the Revenue that revised computation was sufficient in the place of furnishing revised returns as there was only a minor technical fault as the figure of USDs was not changed into Rupees while computing the deduction under section 10A.
Facts of the Case
The Assessee is engaged in the business of software related services such as software design and development. Assessee is claiming exemption under Section 10A of the Act. Apart from this, the Assessee has established a Shared Service Centre at Gurgaon for rendering information technology related services and business process management services for which it claimed deduction under Section 80 HHE of the Act. The AO, in its order noted that the business activities at the SDC unit at Chennai had resulted in a loss of Rs.23,49,473 and, therefore, the Assessee was not eligible for exemption under Section 10A of the Act.
As regards the activities at the SSC unit at Gurgaon, the Assessee had earned an income of Rs.4,25,60,064. However, after adjustment of business losses the gross total income was “nil‟. Accordingly, the Assessee did not claim any deduction under Section 80HHE in the computation of the income. However, for computation of minimum alternate tax (“MAT‟), the Assessee claimed a deduction of Rs.4,20,31,476 under Section 80HHE of the Act. After making other adjustments in terms of Section 115 JA of the Act, the book profit was declared as “nil‟ and no MAT was paid. The AO, however, noticed that no Auditor’s report as required by Section 80HHE(4) of the Act, was filed with return of income.
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