Exemption under s 10A

If assessee opts not to claim exemption under s 10A(8) in one year, it cannot be denied exemption in future provided it fulfils all the conditions of s 10A — as held by DelTrib in ACIT v Headstrong Services India Pvt Ltd — In favour of: The Assessee ; ITA No. 519/Del/2011 : Assessment Year: 2005–2006

Declaration required to be made under s 10A(8) is in respect of that year only for which the assessee does not desire the application of the provisions of s 10A. The assessee has not exercised any such option in the impugned assessment year. Hence, the AO’s ground of denial of deduction under s 10A for AY 2000–2001 by invoking the provisions of s 10A(8) cannot be sustained provided, all the other requisites of getting exemption under s 10A are fulfilled in these assessment years.

 

Decided on: 8 April 2011