Ita/60/2012 Of The Commissioner Of Income Tax v. M/S Expert Outsource Pvt Ltd

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 5 DAY OF OCTOBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.60/2012 BETWEEN : 1 THE COMMISSIONER OF INCOME TAX, C R BUILDINGQUEENS ROAD, BANGALORE 2 THE INCOME-TAX OFFICER WARD-11 (1), C.R.BUILDING, QUEENS ROAD, BANGALORE. APPELLANTS ( By Sri. K V ARAVIND, ADV.) AND : M/S EXPERT OUTSOURCE PVT LTD NO.20/2, 17TH CROSS, BETWEEN 6TH & 8TH MAIN, MALLESHWARAM, BANGALORE-560055 ...RESPONDENT ITA is filed Under Sec.260-A of I.T. Act, 1961, arising out of Order dated 31/10/2011 passed in ITA No.95/Bang/2011 by the ITAT, Bangalore. This ITA coming on for admission this day, K.SREEDHAR RAO, J, delivered the following: JUDGMENT The following substantial questions of law raised in the memorandum of appeal are takenup for consideration. 1.Whether the Appellate Authorities were correct in holding that the assessee would be entitled to claim deduction u/s.10A of the Act, even though the company was incorporated and had started business activities prior to obtaining approval of STPI, which was a condition precedent u/s.10A(2)(i)(b) & (c) of the Act, which was admittedly not satisfied? 2.Whether the Appellate Authorities were correct in failing to examine and record a correct finding that obtaining STPI approval for establishment of a STP unit, on 04.08.2004 by utilizing the plant and machinery previously used for the business have been transferred to the STP unit to the extent of Rs.2,80,154/- which is more than 20% of the total plant and machinery of STP unit as laid down in Section 10A(2)(iii) of the Act? This Court in ITA No.323/2010 (DD 1.3.2011) has answered the said questions of law against the revenue. Accordingly, the appeal is dismissed. Sd/-JUDGE Sd/-JUDGE bkm.