(1.) This appeal under Sec. 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the assessee. The subject matter of the appeal pertains to the Assessment year 2008-09. The appeal was admitted by a bench of this Court vide order dtd. 24/2/2015 on the following substantial questions of law:
(2.) Facts leading to filing of this appeal briefly stated are that the assessee is a private limited company incorporated under the Companies Act, 1956 and is engaged in the business of development software and certain Information Technology Enabled Services (ITEs) activity. The assessee was initially accorded approval for setting up a unit under software technology park scheme on 6/9/1994. The licence granted to the assessee was valid upto 5/9/2009 which was renewed subsequently upto 5/9/2014. For the Assessment Year 2008-09, the assessee filed the return of income on 25/10/2008, by which total income was declared as 'NIL' after claiming exemption of Rs.16,20,65,750.00 under Sec. 10A of the Act.
(3.) The case of the assessee was selected for scrutiny and a notice under Sec. 143(2) and Sec. 142 of the Act was issued to the assessee. The assessee responded to the aforesaid notices by filing replies and by furnishing documents. The Assessing Officer by an order dtd. 24/12/2010 inter alia held that assessee is entitled to deduction under Sec. 10A of the Act and quantified the amount claimed as deduction under Sec. 10A of the Act.