1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 11TH DAY OF JUNE 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR.JUSTICE HEMANT CHANDANGOUDAR I.T.A. NO. 184 OF 2012 BETWEEN 1. COMMISSIONER OF INCOME-TAX, C R BUILDING, QUEENS ROAD, BANGALORE. 2. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-11(4) C R BUILDING, QUEENS ROAD, BANGALORE. APPELLANTS (BY SRI DILIP, ADV. FOR SRI K V ARAVIND, ADV.) AND M/S. HICAL TECHNOLOGIES PVT. LTD., SURVEY NO.46 & 47 ELECTRONIC CITY, HOSUR ROAD, BANGALORE-561229. RESPONDENT (BY SRI T SURYANARAYANA, ADV.) 2 THIS ITA IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 24-02-2012 PASSED IN ITA NO.1389/BANG/2011, FOR ASSESSMENT YEAR 2004-2005, PRAYING TO: I. FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, II. ALLOW APPEAL AND SET ASIDE ORDERS PASSED BY ITAT, BANGALORE IN ITA NO.1389/BANG/2011 DATED 24-02-2012 AND CONFIRM ORDER OF APPELLATE COMMISSIONER CONFIRMING ORDER PASSED BY DEPUTY COMMISSIONER OF INCOME TAX, CICLE-11(4), BANGALORE, IN INTEREST OF JUSTICE AND EQUITY. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT Mr.Dilip, learned counsel for K.V.Aravind, learned counsel for revenue. Mr.T.Suryanarayana, learned counsel for respondent. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as Act , for short) has been filed by revenue which was admitted by Bench of this Court vide order dated 15.01.2013 on following substantial questions of law: 3 a) Whether Tribunal was correct in holding that interest earned on deposits kept as margin money is part of profits derived from export and therefore eligible for deduction in terms of provisions of Section 10A of Act? b) Whether Tribunal was correct in holding that losses of EC-1 & EC-2 units cannot be set off against profits of EC-3 unit for purpose of computing deduction u/s. 10A of Act when deduction was allowable on total income of undertaking? c) Whether Tribunal committed error in not taking into consideration amendment to Section 10A of Act by Finance Act 2000 w.e.f. 01.04.2001, deduction of profits and gains earned by undertaking from export of article or things or computer software is required to be allowed from total income of assessee and consequently loss from any STP / non STP unit is required to be set off against 4 income of other STP unit before allowing deduction u/s. 10A of Act? 3. When matter was taken up today, Learned counsel for parties jointly submitted that first substantial question of law has been answered by Full Bench of this Court in COMMISSIONER OF INCOME TAX Vs. HEWLETT PACKARD GLOBAL SOFT LTD. [2017] 87 TAXMANN.COM 182 (KARNATAKA) (FB). It is further pointed out that second and third substantial questions of law have been answered by Supreme Court in COMMISSIONER OF INCOME-TAX Vs. YOKOGAWA INDIA LTD. [(2017) 77 TAXMANN.COM 41 (SC)]. 4. In view of aforesaid submission and in view of aforesaid enunciation of law, substantial 5 questions of law are answered against revenue and in favour of assessee. In result, appeal is dismissed. Sd/- JUDGE Sd/- JUDGE RV Commissioner of Income-tax, Bangalore / Deputy Commissioner of Income-tax, Circle-11(4), Bangalore v. Hical Technologies Pvt. Ltd