APS TECHNOLOGIES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS appeal is filed by the assessee challenging the impugned order of the Ld. CIT(A) -II, Pune dated 25 -10 -2013 for the A.Y. 2010 -11. The assessee has taken following grounds in the appeal:

(2.) THE authorities below erred in facts and circumstances of the case and in law in denying the claim of the assessee u/s. 10A under the belief that the business is already in existence and thus condition in section 10A 2(ii) has been violated. Just and proper relief be granted to the assessee in this respect.

(3.) WE have heard the rival submissions of the parties and perused the record. The Ld. Counsel submits that the assessee is in the business of ERP Consulting. The assessee accounted the software development fees to the extent of Rs. 1,26,02,998/ - and declared the net profit on the same at Rs. 1,11,47,522/ -. He submits that the interpretation made by the Assessing Officer of Sec. 10A(2)(ii) & (iii) of the Income -tax Act is totally erroneous. He submits that A.Y. 2010 -11 was the first year of operation as STP unit. He argues that the main reason of the Assessing Officer for rejecting the claim of the assessee is that the assessee has not shown any asset in the balance sheet. He argues that he explained to the Assessing Officer that the assessee firm has purchased two laptops and a printer from M/s. Knowasys Technologies P. Ltd. and the evidence in support of the same was also furnished. The payment was made by the partner through his bank account. The assessee has used said laptops for its software development programme of ERP system.