IN THE ITAT CHENNAI BENCH ‘C’
Tata Consultancy Services Ltd.
Versus
Assistant Commissioner of Income-tax
IT APPEAL NOS. 792 & 793 (MDS.) OF 2010
[ASSESSMENT Years 2003-04 & 2004-05]
NOVEMBER 21, 2012
ORDER
S.S. Godara, Judicial Member
These two appeal of the assessee are directed against different orders of the Commissioner of Income Tax (Appeals) III Chennai in ITA No. 578/07-08/A.III and ITA No. 521/06-07/A.III; dated 16.03.2010 and 15.03.2010 for the assessment years 2003-04 and 2004-05, respectively, in proceedings under section 154 of the Income Tax Act 1961 [in short the “Act”] for the assessment year 2003-04 and under section 143(3) of the “Act” for the assessment year 2004-05. Since grounds raised are identical in both appeals, we take up I.T.A. No. 792/Mds/2010 as lead case.
I.T.A. No. 792/Mds/2010:
2. The following grounds have been raised:
“2. (i) The Commissioner of Income Tax (Appeals) erred in confirming the rectification order under Section 154 of the Income Tax Act, 1961.
(ii) The Commissioner of Income Tax (Appeals) ought to have appreciated that issue considered by the Assessing officer for the purpose of rectification is highly debatable issue and as such the Assessing Officer was not correct in amending the order under Section 154 of the Act.
(iii) The Commissioner of Income Tax (Appeals) ought to have appreciated that debatable issue cannot be considered as mistake apparent from record.
3. Without prejudice to the above claim, the Appellant submitted that the Commissioner of Income Tax (Appeals) ought to have appreciated that the claim of deduction under section 10A allows an assessee to avail the benefits only for a period of 5 years out of 8 consecutive years and the Appellant had chosen the period only from Assessment Year 1999-2000 and not claimed the deduction under Section 10A for the Assessment Year 1997-98. Accordingly, the unabsorbed business loss /unabsorbed depreciation of Assessment Year 1997-98 should be allowed to be carried forward and set off in the subsequent years.”
3. Facts as relevant to the grounds are that the assessee is a company involved in the business of maintenance and development of computer software. For the impugned assessment year, it filed its ‘return’ on 21.11.2003 admitting total income of Rs. 1,36,36,175/-. Thereafter, the Assessing Officer completed scrutiny assessment vide assessment order dated 13.02.2006 computing taxable income of Rs. 1,75,58,720/- as under:
