PR. Commissioner of Income Tax Vs. E-funds International India Pvt. Ltd., I.T.A. No. 607/2015, Date of Order: 06.10.2015, High Court of Delhi
Whether AO is correct while not allowing deduction under Section 10A to the Assessee either for the same or any subsequent assessment year where assessee had claimed deduction under Section 80HHE of the Act in AY 2000-01.
The decisions of this Court in Commissioner of Income Tax v. Interra Software India (P) Ltd. (2011) 238 CTR (Del) 23, Commissioner of Income-tax v. Damco Solutions (P) Ltd.  11taxmann.com 365 (Del) and Commissioner of Income Tax v. EDS Electronics Data Systems (India) (P) Ltd. (2013)89 DTR (Del) 182 answer the question in favour of the Assessee and against the Revenue. These decisions explain that the making of a claim under Section 80HHE of the Act in one assessment year will not preclude an Assessee from claiming the benefit under Section 10A of the Act in respect of the same unit in a succeeding assessment year. It was explained that the purpose of the Section 80HHE(5) of the Act was to avoid double benefit but that would not mean that if for a particular assessment year the Assessee wants to claim a benefit only under Section 10A of the Act and not Section 80HHE, that would be denied to the Assessee.