Section 10B deduction and consistency principle prevent denial of export unit relief for lack of Board ratification.

Deduction under Section 10B was discussed in relation to a 100% export oriented unit approved by STPI, where the Revenue objected that the approval had not been ratified by the Board of Approval. The Tribunal noted that its earlier decision, affirmed by the High Court, had already taken the view that Section 10B relief could not be denied merely for want of such further ratification, provided the other statutory conditions were met. It also applied the principle of consistency, observing that the deduction had been allowed in earlier years and the Revenue could not adopt a different stand in the sixth year of the claim. The Revenue's objection therefore failed.

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Issues: Whether deduction under Section 10B could be denied merely because the approval granted to the unit was not ratified by the Board of Approval, and whether the Revenue could adopt a different stand in a later year after allowing the claim in earlier years.

Analysis: The assessee's unit had been approved as a 100% export oriented undertaking and the claim under Section 10B had been allowed in earlier assessment years. The Tribunal noted that the issue was covered by its earlier decision, which had been affirmed by the High Court, holding that once the STPI had approved the unit, deduction under Section 10B could not be denied merely for want of further ratification, subject to fulfilment of the other statutory conditions. The Tribunal also applied the principle of uniformity and consistency, observing that the Revenue had accepted the claim in prior years and could not take a different view in the sixth year of the claim.

Conclusion: The deduction under Section 10B could not be denied on the ground of absence of Board ratification, and the Revenue's objection failed.

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