COMMISSIONER OF INCOME TAX Vs. VESESH INFOTECHNICS LIMITED

JUDGEMENT

(1.) These appeals are filed by the Revenue under Section 260-A of the Income Tax Act ('the Act' for short), being aggrieved by the order dated 02-12-2005 passed by the Income Tax Appellate Tribunal allowing the appeals in part and granting the benefit under Section 80-IA and 80-IB of the Act and also allowing litigation expenses to the assessee for the assessment years 1999-2000, 2000-2001, and 2001- 2002.

(2.) Since the common question of facts and law are involved in these three appeals and the Appellate Tribunal has passed the common order. Hence, all the three appeals are taken up together and disposed off by this order.

(3.) The respondent-assessee is a Company incorporated under the Companies Act doing business in development of Software. It has established a new Industrial Unit at Silvassa, Union Territory of Dadra and Nagar Haveli. The new industry has been established on 13-3-1999 and filed its returns for the assessment year 1999-2000 declaring the total income of Rs.72,32,744/-. In the returns, the assessee claimed deduction under Section 80-IA of the Act to the extent of Rs.60,43,212/- in respect of new industrial undertaking at Silvassa, Union Territory of Dadra and Nagar Haveli. The Assessing Authority accepted the same, however, it was subsequently reopened under Section 147 of the Act. In the Profit and Loss account, it is shown that the assessee has achieved turnover of Rs.63,75,000/- in respect of Computer Software sales. After deducting the expenses of Rs.3,31,788/- arrived at the profit of Rs.60,43,212/- from this Unit. On reassessment, deduction under Section 80-IA was disallowed.