STPI registration accepted for section 10B deduction where prior year ruling and identical facts supported consistency

STPI registration for a 100% export oriented unit was treated as sufficient approval for claiming deduction under section 10B of the Income-tax Act, 1961, where the issue had already been accepted in the assessee's own earlier year and the facts for the years under appeal were identical. The tribunal applied the rule of consistency and followed its prior view, holding that the departmental objection based on approval under the Industries (Development and Regulation) Act, 1951 did not prevail on the facts. Deduction under section 10B was therefore allowed.

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Issues: Whether registration granted by the Software Technology Parks of India for an export oriented unit was sufficient for allowing deduction under section 10B of the Income-tax Act, 1961, and whether the assessee was entitled to such deduction for the years under appeal.

Analysis: The claim for deduction under section 10B was examined in the light of the earlier tribunal view that STPI registration could be treated as valid approval for a 100% export oriented unit. The Court noted that the same issue had already been accepted in the assessee's own case for an earlier year and that the facts for the years under consideration were identical. In these circumstances, the earlier decision was followed and the rule of consistency was applied. The contrary departmental reliance on the requirement of approval under the Industries (Development and Regulation) Act, 1951 did not prevail on the facts found.

Conclusion: The assessee was held entitled to deduction under section 10B of the Income-tax Act, 1961. The Department's appeals were dismissed.

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