The ITO, Ward-4(1),, Ahmedabad v. Elegant Microweb Technologies Pvt. Ltd.,, Ahmedabad

ITA 1951/AHD/2009 | 2005-2006
Pronouncement Date: 28-12-2010 | Result: Dismissed

Appeal Details

RSA Number 195120514 RSA 2009
Assessee PAN AAACE3459J
Bench Ahmedabad
Appeal Number ITA 1951/AHD/2009
Duration Of Justice 1 year(s) 6 month(s) 12 day(s)
Appellant The ITO, Ward-4(1),, Ahmedabad
Respondent Elegant Microweb Technologies Pvt. Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 28-12-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 28-12-2010
Date Of Final Hearing 28-12-2010
Next Hearing Date 28-12-2010
Assessment Year 2005-2006
Appeal Filed On 15-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD (BEFORE S/SHRI G. D. AGARWAL VP AND BHAVNESH SAINI JM) ITA NO.1951/AHD/2009 A. Y.: 2005-06 THE INCOME TAX OFFICER WARD -4(1) R. NO.105 1 ST FLOOR NAVJIVAN TRUST BUILDING NAVJIVAN P.O. AHMEDABAD VS M/S. ELEGANT MICROWEB TECHNOLOGIES PVT. LTD. A-301 SHAPATH-IV OPP- KARNAVATI CLUB S. G. HIGHWAY AHMEDABAD PA NO. AAACE 3459 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI K. MADHUSUDAN SR. DR RESPONDENT BY SHRI A. C. SHAH AR O R D E R PER BHAVNESH SAINI JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-VI II AHMEDABAD DATED 27-02-2009 FOR ASSESSMENT YEAR 2005-06 CHALLE NGING THE DELETION OF DISALLOWANCE OF RS.90 35 122/- MADE U/S 10A OF THE IT ACT. 2. THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAG ED IN THE BUSINESS OF SOFTWARE DEVELOPMENT AND EXPORTS THEREO F. THE AO REJECTED THE CLAIM OF DEDUCTION U/S 10A OF THE IT A CT HOLDING THAT SOFTWARE WHICH WAS EXPORTED BY THE ASSESSEE DURING THE RELEVANT PERIOD WAS DEVELOPED BY M/S. ELEGANT MICROWEB SYSTE MS PVT. LTD. A SISTER CONCERN OF THE ASSESSEE. THE AO FURTHER OBSE RVED THAT THE ITA NO.1951/AHD/2009 ITO W-4(1) AHMEDABAD VS M/S. ELEGANT MICROWEB TECH NOLOGIES PVT. LTD. 2 ASSESSEE COMPANY HAD GIVEN A CONTRACT TO THE SISTER CONCERN WHO IN TURN DEVELOPED THE MAJOR SOFTWARE FOR THE ASSESSEE COMPANY. THE AO DENYING THE CLAIM OF DEDUCTION TO THE ASSESSEE U /S 10A OF THE IT ACT RELIED ON FINDINGS GIVEN IN ASSESSMENT YEARS 20 03-04 AND 2004- 05. THE LEARNED CIT(A) NOTED THE SUBMISSIONS OF THE ASSESSEE IN THE IMPUGNED ORDER AND ALSO NOTED THAT THE LEARNED CIT( A) FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 ON THE IDENTIC AL FACTS DELETED THE SAME ADDITION. THE LEARNED CIT(A) FOLLOWING THE ORDER OF HIS PREDECESSOR FOR ASSESSMENT YEARS 2003-04 AND 2004-0 5 DELETED THE ADDITION AND ALLOWED THE APPEAL OF THE ASSESSEE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT THE ISSUE IS NOW COVERED BY THE ORDER OF ITAT AHMEDABAD BENCH IN THE CASE OF THE SAME ASSESSEE IN ITA NO.2138/AHD /2006 ITA NO.2509/AHD/2007 FOR ASSESSMENT YEARS 2003-04 AND 2 004-05 WHEREBY THE TRIBUNAL DISMISSED THE DEPARTMENTAL APP EALS VIDE ORDER DATED 23-10-2009. FURTHER ITAT AHMEDABAD BENCH IN THE ASSESSMENT YEAR 2006-07 IN ITA NO.1140/AHD/2010 VID E ORDER DATED 01-10-2010 IN THE CASE OF THE SAME ASSESSEE DISMISS ED THE DEPARTMENTAL APPEAL. COPIES OF THE ORDERS ARE FILED ON RECORD AND GIVEN TO THE LEARNED DR. THE LEARNED DR CONCEDED TH AT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ABOVE ORDE RS OF THE TRIBUNAL IN THE CASE OF THE SAME ASSESSEE. 4. ON CONSIDERATION OF THE ABOVE FACTS WE ARE OF T HE VIEW THAT THE ISSUE IS COVERED BY THE ORDERS OF THE TRIBUNAL DATE D 23-10-2009 AND 01-10-2010 (SUPRA) WHEREBY THE TRIBUNAL HAS DISMISS ED THE ITA NO.1951/AHD/2009 ITO W-4(1) AHMEDABAD VS M/S. ELEGANT MICROWEB TECH NOLOGIES PVT. LTD. 3 DEPARTMENTAL APPEALS FOR THE PRECEDING ASSESSMENT Y EARS AND THE SUBSEQUENT ASSESSMENT YEAR AS NOTED ABOVE ON IDENTI CAL GROUNDS. SINCE THE FINDINGS OF THE AO ARE BASED ON HIS FINDI NGS GIVEN IN ASSESSMENT YEARS 2003-04 AND 2004-05 IN WHICH ADDIT IONS HAVE BEEN DELETED AND CONFIRMED BY THE TRIBUNAL THEREFO RE NO BASIS IS LEFT TO AGITATE DELETION OF ADDITION IN THE DEPARTMENTAL APPEAL. ACCORDINGLY THE DEPARTMENTAL APPEAL HAS NO MERIT. THE SAME IS D ISMISSED. 5. IN THE RESULT THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 28-12-2010 SD/- SD/- (G. D.AGARWAL) VICE PRESIDENT (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 28-12-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD