HCL TECHNOLOGIES Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal under Section 260-A of the Income Tax Act by the assessee, questions an order dated 30.05.2014 of the Income Tax Appellate Tribunal (hereafter "ITAT") in ITA No.5623/Del/2010 for, the assessment year 2005-06 (AY). The ITAT by the impugned order disallowed the appellant's claim for certain deductions under Section 10A of the Income Tax Act, 1961 (hereafter referred to as the "Act"). The following substantial questions of law are urged for this Court's determination in this appeal:

(2.) The appellant is a public limited company engaged in providing software development services through its software development undertakings set up in the Software Technology Park (STP) in NOIDA and Chennai. During the relevant assessment year, the assessee/appellant had 31 independent software development units or undertakings set up at distinct locations. These were registered under 13 licenses with STP authorities. The appellant filed its original return of income on 31.10.2005, where gross business income of Rs. 2,58,17,15,909/- was shown and deduction under section 10A of the Act was claimed at Rs. 2,57,24,87,070/-, considering 13 mother licenses issued by the STP authorities as 13 eligible undertakings or units. Net taxable business income was shown at Rs. 92,28,838/-.

(3.) Later, the appellant filed its revised return of income on 30.03.2007, where deduction under section 10A of the Act was enhanced to Rs. 2,75,57,24,990/-. The assessee now sought to treat 31 undertakings registered with STPI under 13 mother licenses as independent undertakings eligible for the said deduction, separately and individually. The return of income was accordingly, revised showing income from business or profession at Rs. 2,58,77,95,991/- and claiming deduction under section 10A of the Act at Rs. 2,75,57,24,990/-, resulting in loss from business or profession of Rs. 16,79,29,000/-. The assessee had filed certificates in Form 56F in support of its claim of deduction under Section 10A of the Act, claimed in original as well as in the revised return. In the original return the assessee had claimed deduction under Section 10A only in respect of 13 units and in the revised return number of units eligible for the benefits under section 10A was increased from 13 to 31 and separate Form 56F was filed for each of these 31 units.