Decided on October 30,2014

Clarion Technologies Pvt. Ltd. Appellant


G.S.Pannu, Member (A) - (1.) THE captioned four appeals relate to the same assessee and involve certain common issues therefore they have been heard together and a consolidated order is being passed for the sake of convenience and brevity.
(2.) THE assessee is a company incorporated under the provisions of the Companies Act, 1956 and is, inter -alia, engaged in the business of development of computer software and ITES services. The assessee's undertaking at Pune is registered with Software Technology Park of India (STPI) as a 100% Export Oriented Unit (EOU). The undertaking was granted approval by the Director, STPI as 100% EOU on 26.05.2004. The profits derived by the undertaking from development of software and export thereof were claimed as exempt as per the provisions of section 10B of the Income Tax Act, 1961 (in short "the Act"). The exemption relating to the profit derived from export of software development is the substantive dispute in the appeals before us. In assessment year 2010 -11, the Assessing Officer denied claim made by the assessee for exemption u/s. 10B of the Act on the ground that the assessee's undertaking was not approved by the Board appointed in this behalf by the Central Government u/s. 14 of the Industries (Development and Regulation) Act, 1951 whereas the assessee was granted approval by Director, STPI only. The aforesaid stand of the Assessing Officer was based on the judgment of the Hon'ble Delhi High Court in the case of CIT vs. Regency Creations Ltd., : (2012) 27 322 (Del). However, the aforesaid objection was not raised by the Assessing Officer in the immediately preceding assessment year of 2009 -10 wherein the Assessing Officer allowed the claim of exemption u/s. 10B of the Act in -principle with certain modification regarding the quantification of the claim on account of assessee's offices at Ahmedabad and Bangalore. In assessment year 2009 -10, CIT(A) also concurred with the assessee for exemption u/s. 10B of the Act in -principle but differed with the assessee only on account of the quantification of the claim. In this background, now in so far as assessment year 2010 -11 is concerned, assessee vide its appeal in ITA No. 116/PN/2014 is assailing the stand of the income -tax authorities in holding that assessee is not eligible for the claim of exemption u/s. 10B of the Act. This appeal is directed against the order of the CIT(A) - I, Pune dated 31.10.2013 which, in turn, has arisen from an order dated 28.01.2013 passed by the Assessing Officer u/s. 143(3) of the Act for assessment year 2010 -11.
(3.) WHEREAS for assessment year 2009 -10 vide ITA Nos. 2554 and 2610/PN/2012, the Revenue and assessee respectively are in cross -appeal arising from the order of the Commissioner of Income Tax (Appeals) -I, Pune dated 08.10.2012 which, in turn, has arisen from an order dated 16.12.2011 passed by the Assessing Officer u/s. 143(3) of the Act. In the cross -appeals, the only issue relates to the manner and the quantum of exemption allowable to the assessee u/s. 10B of the Act. Additionally, in assessment year 2009 -10, assessee has also filed a cross -objection vide C.O. No. 06/PN/2014, wherein no independent ground has been raised but it relates to the quantification of eligible exemption u/s. 10B of the Act which is subsumed in dispute raised by the assessee in its appeal in ITA No. 2554/PN/2012 for assessment year 2009 -10.;

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