TaxTMI 
TaxTMI 
FACTS WE Swadesh Engg. Industries started in 1994 as a Domestic unit manufacturing Nuts & bolts & also doing Job work for the same. We converted ourself in the year 2000 from Domestic unit in to a 100% Export Oriented Unit (EOU). As You know under section 10B of IT Act Profit & Gains from a 100% EOU is fully exempt from I. Tax for a consecutive 10 years. We have claimed the same deduction from Assessment Year 2000-01 to 2009-10. Querry. Under sunset clause Sh. Kamal Nath Honable Minister of Commerce & Industry extended this Period up to 31.03.2010 & further 31.03.2011. Now our Point is can we claim the deduction under section 10B in Assessment Year 2010-11 & 2011-12.
100% EOU - claim of exemption u/s 10B
03 Apr 2010 
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EOU tax holiday: extension of scheme period does not extend an individual unit's fixed-term exemption beyond its prescribed duration.
The exemption for profit and gains of a 100% Export Oriented Unit is subject to a fixed-term tax holiday; statutory or administrative extensions of the scheme's overall window do not extend an individual unit's allotted exemption period. Therefore, a unit that has exhausted its unit-level fixed-term entitlement cannot claim further exemption in later assessment years solely because the scheme's sunset date was extended. (AI Summary)
The exemption for profit and gains of a 100% Export Oriented Unit is subject to a fixed-term tax holiday; statutory or administrative extensions of the scheme's overall window do not extend an individual unit's allotted exemption period. Therefore, a unit that has exhausted its unit-level fixed-term entitlement cannot claim further exemption in later assessment years solely because the scheme's sunset date was extended. (AI Summary)