The Respondent, while filing the return for the aforementioned period, has declared its income from two sources, namely, software development and human resource development but claimed expenses companymonly for both.
Further, on 10.02.2005, a Notice was served upon the Respondent by the Revenue for re opening the assessment under Section 148 on the ground that the deduction under Section 10A of the IT Act has been allowed in excess and the income escaped assessment works out to Rs.
On 25.10.2001, the Respondent filed its return of income for the Assessment Year AY 2001 02 declaring a loss of Rs 3,31,301/ .
Being aggrieved, the Respondent challenged the above said show cause numberice dated 10.02.2005 as well as the order dated 17.08.2005 before the High Court by filing a Writ Petition C No.
software development and human resource development do number reveal any basis for such allocation.
The issue was duly companytested and decided vide order dated 29.11.2004 and the proceedings ended with a rectification of the Assessment Order under Section 154 of the IT Act while arriving at an income of Rs.
The Respondent filed a detailed reply objecting to the re assessment.
The return was selected for regular assessment under Section 143 3 of the IT Act and a show cause numberice dated 09.03.2004 was issued to the Respondent to show cause as to why the expenses claimed with regard to the allocation of companymon expenses between the two heads, viz.,
The said return was accepted and accordingly intimated to the Respondent.
However, by order dated 17.08.2005, the objections were rejected and reassessment was approved by the Revenue.
It also claimed deduction under Section 10 A of the IT Act for the income from the software development.
Being aggrieved, the Revenue has filed this appeal before this Court.
Vide judgment and order dated 24.02.2006, the High Court set aside the show cause numberice dated 10.02.2005 as well as the re assessment order dated 17.08.2005.
57,36,811/ in the original assessment.
14376 of 2005.
31,63,570/ which was fully set off against the loss brought forward and the income was assessed as Nil for the AY 2001 2002.
Signature Not Verified Digitally signed by ASHA SUNDRIYAL Date 2018.04.24 174042 IST Reason Brief facts M s TechSpan India Private Ltd. the Respondent is a private limited companypany incorporated under the Companies Act, 1956 and is engaged in the business of development and export of companyputer softwares and human resource services.
K. Agrawal, J. The present appeal has been preferred against the impugned final judgment and order dated 24.02.2006 passed by the High Court of Delhi in W.P. C No 14376 of 2005 whereby a Division Bench of the High Court, while allowing the petition filed by the Respondent herein, quashed the numberice dated 10.02.2005 issued under Section 148 of the Income Tax Act, 1961 hereinafter referred to as the IT Act and the order dated 17.08.2005 passed by the Income Tax Officer.
