Sanjiv Khanna, J. (Oral):

1. This appeal by the assessee pertains to assessment year 2005-06 and was admitted for hearing vide order dated 19th October, 2012, on the following substantial question of law:-

“Did the Tribunal fall into error in holding that the assessee had setup its business w.e.f. 1.6.2004 and not w.e.f. 1.4.2004, as held in the impugned order.”

2. The appellant-assessee was incorporated on 19th March, 2004, as a subsidiary of one M/s Omniglobe International, USA, as a business process service provider. The appellant-assessee had claimed deduction under section 10B, of the Income Tax Act (“Act”, for short), for a period commencing from 1.4.2004 to 31.5.2004, contending that it had obtained approval as a 100% Export Oriented Unit under STPI scheme and had commenced operations from 1.4.2004. The Assessing Officer as well as the Tribunal have held that the appellant assessee had commenced its operations only from 1.6.2004, i.e. the date on which the appellant assessee entered into “service agreement” with its parent company and, therefore, the expenditure incurred between 1.4.2004 to 31.5.2004 should be capitalised. Tribunal, in its impugned order had also