Income Tax Appellate Tribunal Delhi Quadrant Infotech (India) Pvt. Ltd, New ... vs Assessee IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH 'F' NEW DELHI) BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. No.2837. 2838 & 2839/Del/2009 & I.T.. No. 4685 and 4686/Del/2010 Assessment year : 200102,20022003, 200304 & 200405 & 200506 DCIT, M/s Quadrant Infotech India (P) Circle14 (1), Ltd., 15D, SIDS, Indl. Area, New Delhi. V. PhaseII, New Delhi. Cross Objection No.246 & 247/Del/2009 (In I.T.A. No. 2837 & 2838/Del/ 2009) Assessment year : 200102 & 200304 M/s Quadrant Infotech DCIT, India (P) Ltd.,. 15D, SIDS, Circle14 (1), Indl. Area, PhaseII,N. Delhi. v. New Delhi. (Appellant) (Respondent) Assessee by : Shri C.S.Agarwal, Sr. Advocate Shri Rajesh Arora, C.A Shri Gautam Jain, C.A. Respondent by : Shri KK Mishra, Sr.DR. ORDER PER TS KAPOOR, AM: These are five appeals filed by the Revenue directed against the order of ld CIT(A)XXVIII, New Delhi for assessment years 200102, 02 03,0304,0405 & 200506 dated 5.3.2009, 2.8.2010,5.3.2009,2.8.2010 and 5.3.2009 respectively. These appeals were heard together and ITA No2837to 2 2839,46854686/Del/09 &2010 & there is common issue involved, therefore these appeals and cross objections are being disposed off through a common consolidated order. 2. The sole issue raised by the revenue is the allowing of deduction under section 10B of the Income Tax Act, 1961. The revenue has also challenged the deletion of disallowance of `.1876004 on account of depreciation on electrical installation in assessment year 200304. The assessee vide cross objection has challenged the reopening of the cases under section 147/148 of the Income Tax Act, 1961 and also against upholding of disallowance of `.14,06,505/ on account of maintenance expenses during assessment year 200304. 3. The brief facts of the case as stated by assessee and reproduced by the Assessing Officer are that the assessee is a company which was incorporated in the year 199495 and was operating from 15, DSIDC, Okhla Industrial Area, New Delhi. Simultaneously, the assessee company was in the process of setting up of a new industrial undertaking at Plot No.27, Electronic City, Sector18, Gurgaon. The said order further states after purchasing land and after construction of building, the new industrial undertaking got itself registered with Software Technology Park of India in March, 2000 and also got itself registered under P.F. Act vide registration No. HRD/FRD/10620 for the employees employed for the new undertaking. The assessee company also obtained registration under ESI Act vide registration No.13/2754/62 for the employees employed for the new undertaking. The said new industrial undertaking also obtained new registration under Shops and Establishments Act and obtained a new TDS number under the It Act. In view of setting up of new undertaking the assessee started claiming deduction u/s 10B of the Act w.e.f. assessment year 2 ITA No2837to 3 2839,46854686/Del/09 &2010 & 200102 and Department continued to grant deduction till 200506. The claim of deduction was not denied even in the assessment year 200304 & 200405, where assessments were completed u/s 143(3) of the Act. 4. While making assessment for assessment year 200506, the assessee was asked to furnish justification for deduction u/s 10B of the Income Tax Act, 1961 since the Assessing Officer had observed that new industrial undertaking was engaged in the same line of business even, before assessment year 200102 i.e. the year from when the assessee was claiming deduction u/s 10B of the Act and moreover new unit was formed after splitting the existing business by transferring about 51.78% assets of existing business. In reply to the query of the Assessing Officer the assessee company gave detailed background of its activities and furnished documents/certificates in support of its having started a new undertaking at Gurgaon. The assessee submitted that claim of the assessee was as per provisions of section 10B of the Income Tax Act, 1961 and was in accordance with law. On the basis of certain judicial judgments, the