COMMISSIONER OF INCOME TAX Vs. BAEHAL SOFTWARE LTD

JUDGEMENT

(1.) THESE four appeals are preferred by the Revenue in respect of four assessment orders. Though, there are four separate assessment orders, the reasoning given by the AO is the same, which has now been set aside by the Tribunal. Accordingly, all the appeals are taken up together for consideration and disposed of by this common order.

(2.) THE assessee is a company engaged in the business of development and export of software. It is a joint venture of HAL and British Aerospace. The assessee filed its return of income for the asst. yr. 1999-2000 declaring a total income and claiming exemption under S. 10B of various amounts in each of the assessment orders. The AO has disallowed the exemption under S. 10B on the ground that the assessee has commenced production much prior to 1st April, 1994 i.e., before S. 10B was amended by the Finance Act, 1994 which came into effect from 1st April, 1994. As the assessee does not satisfy the requirement mentioned in the section, he is not entitled to exemption. Aggrieved by the said order of the AO, the assessee preferred an appeal before the CIT(A) who set aside the order and allowed the appeal and held that the assessee is entitled to exemption under S. 10B. Aggrieved by the same, the Revenue preferred an appeal to the Tribunal, which upheld the order of the appellate authority, based on the Circular No. 684, dt. 10th June, 1994 [(1994) 119 CTR (St) 25] issued by CBDT. Aggrieved by the same, the Revenue is in appeal.

(3.) PER contra, the learned counsel appearing for the assessee supported the impugned order.