Case Law Details
Limtex Infotech Ltd. Vs ITO (ITAT Kolkata)
1. This appeal by the Assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-11, Kolkata [in short the ld CIT(A)] in Appeal No. 583/CIT(A)-11/7(4)/Kol/14-15/Kol dated 24.03.2017 against the order passed by the ITO, Ward-7(4), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 26.03.2013 for the Assessment Year 2010-11.
2. The only effective issue involved in this appeal is as to whether the ld CITA was justified in upholding the disallowance of deduction claimed u/s 10B of the Act in the facts and circumstances of the case.
3. The brief facts of this case are that the assessee has two main verticles in its business. One vertical comprises development of software and other vertical comprises of running a call centre, income from which has been claimed as exempt u/s 10B of the Act. The assessee was registered under the Software Technology Park (STP in short) scheme as 100% Export Oriented Unit (EOU in short) on 28.1.2005. The same was subsequently renewed on 27.7.2010. The green card was issued to the assessee by the designated officer for Secretary to the Government of India, Department of Information Technology and Chairman Inter Ministerial Standing Committee on Software Technology Park Scheme. The assessee does not have any approval from the Board of Approval for EOU Scheme. The claim of deduction u/s 10B of the Act was disallowed by the ld AO.
4. The entire debate and argument of the A.O. who has disallowed the benefit u/s 10B and the assessee who has argued his case for eligibility of exemption of its income u/s 10B revolves around certain provisions of Sec. 10B which is clearly mentioned in CBDT Instruction No. 2/2009 dated 09.03.2009 as rectified by Instruction of even number on 08.05.2009. The following is extract of instruction:
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