Section 10A deduction computed on business profits apportioned by export turnover ratio, including surplus fund interest; hedging forex losses non-speculative; 10A losses set-offtable; FTC available despite deduction; no automatic creditor cessation without write-back.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, C: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA Nos.5624/Del/2010 & 5465/Del/2011 [Assessment Years: 2006-07 and 2007-08]

HCL Technologies Limited, Asst. Commissioner of 806, Siddhartha 96, Income Tax, Central Circle-2, Nehru Place, New Delhi. Vs New Delhi.

PAN- AAACH1645P Assessee Revenue Assessee by Shri Ajay Vohra, Sr. Adv., Shri Neeraj Jain, Adv., Shri Aditya Vohra, Adv., Shri Arpit Goyal, CA &

Shri Shashvat Dhamija, Adv.

Revenue by Shri G.C. Srivastava, Special Counsel (VC), Shri Kalrav Malhotra, Adv.

Date of Hearing 16.01.2026 Date of Pronouncement 15.04.2026

ORDER

PER BRAJESH KUMAR SINGH, AM, These two appeals have been preferred by the assessee against the Final Assessment Order dated 28.10.2010 and 30.10.2011 passed by the ACIT, Central Circle-2, New Delhi, and ACIT, Central Circle-18, New Delhi(hereinafter referred to as the ‘ld. AO’) under Section 143 read with Section 144C(13), of the Income- tax Act, 1961 (“the Act”), pursuant to the directions of the Hon'ble Dispute Resolution Panel-2, New Delhi (DRP) order dated 30.09.2010 and 20.09.2011 for the Assessment Year 2006-07 and 2007-08 respectively.

2. There are multiple common grounds in both the appeals. During the course of the hearing, the assessee filed a tabular chart for both the appeals and paper books and a compilation of case laws, which will be referred as per the requirement in this order.

2.1 During the pendency of the appeal, the assessee also filed additional grounds. These additional grounds along with the grounds of appeal will be dealt later in this order.

2.2. Further, the assessee also filed additional evidences in support of its claim of credit of Foreign Tax Credit of Rs. 15,20,58,506/-.

2.3 Further, the Spl. Counsel of the Department filed a written submission dated

07.07.2025 and the assessee filed a rejoinder dated 04.08.2025.

2.4 Necessary references will made to all the said documents evidences at the appropriate place as per its relevance and its requirements.

2.5 Since in both the apples issues are largely common issues are involved and therefore the same are disposed by this common order for the sake of convenience and brevity.

ITA No.- 5624/Del/2010 for A.Y. 2006-07 First, we take up the appeal for A.Y. 2006-07 in ITA no.- 5024/Del/2010.

3. The assessee had filed its return of income on 27.11.2006 declaring total income of Rs.4,08,00,448/-. Later on, the assessee filed a revised return on

28.3.2008 declaring total income of Rs. Nil.

3.1 During the year, the assessee was engaged in the business of development and export of computer software and rendering technical services. In the original return filed the assessee had shown gross income from business at Rs.650,42,87,652/- and deduction u/s 10A of the Act of Rs 644,73,03,493/- was claimed and business income was shown at Rs. 5,69,84,159/-. In the revised return gross income from business and profession was shown at Rs. 626,69,24,986/- and deduction a/s 10A was claimed