The Bangalore bench of the Income Tax Appellate Tribunal ( ITAT ) has recently allowed a deduction under section 10A of the Income Tax Act, 1961 towards the claim of Yahoo Software Development Pvt. Ltd.

The assessee revised its return filed for the relevant year and claimed deduction under section 10A of the Act. However, the Assessing Officer rejected the claim and Act for the reason that the sale proceeds on the basis of which the assessee claimed deduction, were not received within the stipulated time limit.

Before the Tribunal, the assessee claimed that the export turnover was received within the stipulated period. Relying on the order of the Pune Bench of the ITAT in the case of Approva Systems Pvt.Ltd. v. DCIT, the assessee contended that once the assessee has offered the additional income as business profit, the same has to be considered for deduction u/s 10A of the Act.

The Tribunal accepted the above contentions and observed that the deduction is allowable since the assessee-Company offered the subsequently realized export income by filing a revised return.

“Being so, in the present case, the assessee has offered the subsequently realized export income by filing a revised return. Therefore, the same should be considered for granting deduction u/s 10A of the Act, and there is no necessity to rectify the same after completion of assessment as held by the Delhi Tribunal in the case of ITO v. M/s.PCL Exports (supra). Accordingly, this ground of the assessee is allowed.”