The Commissioner of Income-tax, Bangalore / The Deputy Commissioner of Income-tax, Circle-11(4), Bangalore v. Hical Technologies Pvt. Ltd
|The Commissioner of Income-tax, Bangalore / The Deputy Commissioner of Income-tax, Circle-11(4), Bangalore
|Hical Technologies Pvt. Ltd.
|HIGH COURT OF KARNATAKA
|Date of Order
|interest earned on deposits • substantial question of law • computing deduction • computer software • profits derived • margin money • set off
|Mr.T.Suryanarayana, learned counsel for the respondent. This appeal under Section 260-A of the Income Tax Act, 1961 has been filed by the revenue which was admitted by a Bench of this Court vide order dated 15.01.2013 on the following substantial questions of law: 3 a) Whether the Tribunal was correct in holding that the interest earned on deposits kept as margin money is part of the profits derived from export and therefore eligible for deduction in terms of the provisions of Section 10A of the Act b) Whether the Tribunal was correct in holding that the losses of EC-1 EC-2 units cannot be set off against the profits of the EC-3 unit for the purpose of computing deduction u/s. 10A of the Act when the deduction was allowable on the total income of the undertaking c) Whether the Tribunal committed an error in not taking into consideration the amendment to Section 10A of the Act by Finance Act 2000 w.e.f. 01.04.2001, the deduction of profits and gains earned by the undertaking from the export of the article or things or computer software is required to be allowed from the total income of the assessee and consequently the loss from any STP / non STP unit is required to be set off against the 4 income of the other STP unit before allowing deduction u/s. When the matter was taken up today, Learned counsel for the parties jointly submitted that the first substantial question of law has been answered by a Full Bench of this Court in COMMISSIONER OF INCOME TAX Vs. HEWLETT PACKARD GLOBAL SOFT LTD. 2017 87 TAXMANN.COM 182. It is further pointed out that the second and third substantial questions of law have been answered by the Supreme Court in COMMISSIONER OF INCOME-TAX Vs. YOKOGAWA INDIA LTD. 77 TAXMANN.COM 41. In view of the aforesaid submission and in view of the aforesaid enunciation of law, the substantial 5 questions of law are answered against the revenue and in favour of the assessee.