TaxTMI 
TaxTMI 
2002 (5) TMI 217
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....entral Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 and Rules made thereunder. (b) The Ld. CIT(A) ought to have accepted the submission of the assessee that the Central Government has conferred authority on the Department of Electronics, to grant approval under section 14 of the Industries (Development and Regulation) Act, 1951 and Rules made thereunder pursuant to which the approval was given to the Nagarjuna Hills unit and as such benefit of exemption under section 10B in respect of the income therefrom was available to the assessee. He ought to have given an opportunity to the assessee to produce necessary evidence in this behalf. (c) The CIT(A) ought to have held that the benefit of exemption from tax in respect of income from STP unit at Nagarjuna Hills was available to it under section 10A by virtue of the fact that under letter dated 26-6-1995 of the Department of Electronics, the said unit was approved as its initial plant at Maithrivanam Complex which was approved as 100% Export Oriented Unit under letter dated 26-6-1991 of the said Department. (d) The CIT(A) erred in holding that the benefit....
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....p; --------------- Net Profit as per Profit & Loss A/c Rs. 2,03,77,396 Add: Inadmissible Expenses/Allowances to be considered separately 1. Depreciation as per books of account 37,60,507 2. Provision for Bonus 5,82,000 Less: paid before filing of IT return 4,87,339 94,661 &....
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....p; 19258249 Gross Total income after 80HHE 1369096 2. U/s 80-IA @ 3096 of 1369696 410909 Taxable income &....
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....--- (working sheet enclosed) 20377396 Taxable book profits (30%) 6113220 Tax under M.A.T. @ 43% 2628700 Less: TDS/Advance Tax paid &....
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....; 0 3. Entertainment allowed upto Rs. 10,000 - 100% 0 Balance Rs. 0 4. Travel Expenses disallowed Under Rule 6D-As per Annexure-I 0 84131 Gross income before depreciation 4202498 Les....
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....bsp; 487339 94661 3. Entertainment Allowed Rs. 165727 Upto Rs. 10,000 - 100% Balance Rs. 158679 - 50% 79340 4. Travel Exp. disallowed under Rule 6D-As per Annexure-I 11045 2761 4021400 Gross income before depreciation 28517163 Less: Depreciation as per IT Rules &....
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.... Income-tax Act. This position has, however, been given up in the course of the hearing before us as we shall mention presently and the claim for exemption is extended to the entire income of the assessee. 5. The assessee came into existence as an unit under the Software Technology Park Scheme (STP Scheme) at Maithrivanam, Hyderabad vide approval granted to the assessee by the Department of Electronics, Software Development Division, New Delhi vide its letter dated 26th September, 1991 which reads as under: "Sub : Application for setting up your operation under Software Technology Park Scheme, for development and 100% export of soft ware, using data communication channels, in the Software Technology Park, Hyderabad sponsored by the Department of Electronics. Dear Sir, This has reference to your above application for setting up your operation in the Software Technology Park, Hyderabad sponsored by the Department of Electronics, under the Software Technology Park Scheme for the development and 100% export of Software using data communication channels. I am directed to inform you, that your case has been considered by the Inter-Ministerial Standing Committee of Departme....
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....ded in your Private Bonded Warehouse Licence in accordance with the Central Excise Procedures. This letter shall be produced along with the original letter of approval No. 17(40)/91 -SDA dated 26-9-1991. Yours faithfully, sd/= (J.A. Chowdary) Director It may be observed that it was only in the year 1995, the assessee expanded its operations to a separate complex situated at Nagarjuna Hills, Hyderabad and this expansion was not in the nature of setting up of a new unit. At any rate, it has not been claimed by the assessee before us that the expansion of operations to a new complex at Nagarjuna Hills, Hyderabad constituted the setting up of a new unit. This claim, though apparently made before the A.O. and the CIT (Appeals), has been specifically given up before us. It is in the context of these two letters i.e. letter dated 26th Sept., 1991 of Department of Electronics and the letter dated 26th June, 1995 of Software Technology Parks of India that the assessee's claim for exemption under sections 10A and 10B, has to be considered. As already mentioned, before the A.O. there was no claim for the exemption of the entire income of the assessee under section 10A/10B of....
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....CIT(A) having erred in holding that benefits of sections 10A and 10B of the Act cannot be extended to the income attributable to its operations at Nagarjuna Hills, Hyderabad. In the course of hearing, the learned counsel for the assessee gave up its claim for exemption of the income of operations from Nagarjuna Hills, Hyderabad and claimed that its entire income is entitled for exemption under sections 10A and 10B of the Act, but did not file any revised grounds of appeal before us. Normally, we would not have allowed the assessee to take up pleas which were not taken up before the CIT(A), but as no investigation into fresh facts is required, we have allowed the assessee to take up the pleas mentioned and we have proceeded to consider the pleas taken in the course of the hearing as grounds taken before us. In other words, we proceed to dispose of the appeal on the basis that the main ground taken up before us is that tile entire income is exempt either under section 10A or under section 10B of the Act. 6. We shall first consider the claim of the assessee for exemption under section 10A of the Act. In support of this plea, the Ld. counsel for the assessee relied upon Circular No.....
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....g EPZ/EOU units exporting software would get the benefit only from assessment year 1994-95 and not for earlier assessment years. 9. Such a view is not in consonance with the intention of the Government, Finance Act, 1993, extended the scope of the tax holiday to units in STPs but did not curtail the scope, in respect of existing software exporting units in EPZs/EOUs, already availing of the incentive. The Explanation of the term "produce" is clarificatory in nature and was inserted in 1993 primarily because in that year, the tax holiday was extended to units in STPs - which produce only computer software. 10. Accordingly, it is clarified that units in EPZs/EOUs which export software are as much eligible for availing of the five-year tax holiday under sections 10A and 10B as any other units in EPZ/EOU, even for the period prior to the previous year relevant to the assessment year 1994-95. The conditions stipulated in the provisions have, of course, to be fulfilled. The insertion of the Explanation of the term "produce" in 1993 should not be taken as a ground for denying the tax holiday to such units for earlier years. (Sd) K.M. Sultan Director (TPL-II)" In the light o....
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.... - "10A (1) Subject to the provisions of this section any profits and gains derived by an assessee from an industrial undertaking to which this section applies shall not be included in the total income of the assessee. (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely : (i) it has begun or begins to manufacture or produce articles or things during the previous year relevant to the assessment year (a) commencing on or after the 1st day of April, 1981, in any free trade zone; or (b) commencing on or after the 1st day of April, 1994, in any electronic hardware technology park or, as the case may be, software technology park" The Explanation to section 10A reads as under: "For the purposes of this section (i) "free trade zone" means the Kandla Free Trade Zone and the Santa Cruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette, specify for the purposes of this section; (ii) "relevant assessment years" means the ten consecutive assessment years referred to in sub-section (3); (iii) "manufacture" includes a....
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....b-section (2) of section 10A of the Act cannot be extended to it and, therefore, the assessee is not eligible for exemption under section 10A of the Act. We do not have to consider separately the issue whether the income from operations at Nagarjuna Hills can be exempted under clause (i)(b) of sub-section (2) of section 10A, as no separate claim in respect of the unit at Nagarjuna Hills has been made before us and as already mentioned, the Ld. counsel for the assessee has given up the claim that the operations at Nagarjuna Hills constituted a separate unit. 10. Now, we shall consider the plea of the learned counsel for the assessee for the exemption of income of the assessee under section 10B of the Act. The Ld. counsel for the assessee pleaded before us that the assessee is an EOU within the definition of EOU given in clause (i) of Explanation to section 10B of the Act which we have already reproduced hereinabove. It is mentioned that, if the income from the operations at Maithrivanam is eligible for exemption under section 10B, the income from operations at Nagarjuna Hills also automatically becomes eligible for exemption under section 10B of the Act as the latter unit is only....
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....to the issue of a carry-on business licence or to diversification within the exiting licensed capacity in respect of such scheduled industries as may, from time to time be decided by the Central Government having regard to the maximisation of production, better utilisation of existing plant and machinery and other factors, the Ministries concerned may dispose of such application without reference to the Committee. (2) The Ministry of Industrial Development may, by notification ill the Official Gazette, appoint one or more Committees, Consisting of such number of members as it may think fit to represent - (a) the Ministries of the Central Government dealing with (i) the industries specified in the First Schedule to the Act; (ii) Finance; (iii) Company Affairs; and (iv) the Planning Commission (3) A Committee appointed under sub-rule (2) may co-opt one or more representatives of other Ministries of the Central Government or of any State Government concerned, wherever it is necessary." It may be observed that under the above Rule, various Committees can be appointed for the purpose of examining the licences to be granted under this Act. The paper books filed by....
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....ruz Electronics Export Processing Zone, under the scheme of special facilities for setting up hundred per cent export-oriented units framed under the Government of India, Ministry of Commerce, Department of Commerce, Resolution No. 8(15)/78-E.P., dated 31st December, 1980, published in the Gazette of India, Extraordinary, 1980, Part I, section 1 dated the 31st December, 1980. 2. The Board shall review the progress of implementation of letters of intent and industrial licences granted under the said scheme upto the stage of actual commissioning of capacity. 3. The Board shall consider policy questions arising from applications received under the said scheme or from the implementation of individual proposals thereunder and resolve them in accordance with the policy laid down by the Central Government from time to time. 4. The Board may refer any matter in its discretion for the consideration and decision of the appropriate authority in respect of matters falling within its competence. 5. The Board shall exercise the powers of the Licensing Committee appointed under sub-rule (2) of rule 10 of the Registration and Licensing of Industrial Undertaking Rules, 1952, in respect ....
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....retary. 7. A unit approved by the Board shall be governed broadly by the following terms and conditions: (i) The unit shall undertake to manufacture in bond and to export its entire production for a period of 10 years ordinarily and 5 years in the case of products having high degree of technological change. The customs authorities shall provide bond facilities to such units wherever located. (ii) Import of capital goods, components, and raw materials shall be exempt from import duty. Finished products shall also be exempt from excise and other central levies. (iii) No export benefits like cash assistance, replenishment licences would be admissible on these exports. (iv) Import of capital goods, components, raw materials and consumables, as required will be permitted. (v) Imports of necessary capital goods shall be allowed against free foreign exchange or bilateral credits in such a way that the cost of units is not unduly raised. (vi) Foreign collaboration may be permitted on merits of each case. (vii) The conditions for dilution of foreign equity as stipulated in the Department of Economic Affairs Press Note of 19th Feb. 1972 will not be enforced in 100 per....
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....it and recommend the future course of action to be taken in regard to that unit. (xvii)The unit which are approved for these special facilities would have to execute bond/legal undertaking with the CCI&E and in case of failure to fulfil their obligations, they would be liable to penalty in terms of such bond/legal undertaking besides the penalty, if any, under the Import Trade Control Regulations. Illustrative list of products which would be eligible for special facilities on the ground of 100 per cent exports 1. Engineering goods 1.1 Engineering goods (excluding prime and non-ferrous metals) 1.2 Electronic products including electronic software 2. Chemicals, Plastics and allied products, namely: (a) Inorganic chemicals, organic chemicals and miscellaneous chemicals (b) Drugs and drug intermediates, including crude drugs (c) Dyes and dye intermediates (d) Toiletries and perfumeries (excluding processed talc) (e) Paints and allied products (f) Safety matches, fireworks, explosives and detonators (g) Ceramic products (h) Glass and glassware (i) Wood products and processed wood (j) Asbestos cement, including clinkers and cement products ....
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....d that the assessee is an 100% EOU and so is not fair on the part of the Department to reject the claim for exemption under section 10B on the short ground that the assessee was not approved by the Board constituted under Industries (Development and Regulation) Act, 1951 referred to in clause (1) of Explanation to section 10B of the Act. 12. The learned counsel for the assessee further pleaded that an Inter- Ministerial Standing Committee (IMSC) was originally constituted by Gazette Notification No. 294 dated 30-8-1991 to consider the licences under STP Scheme. In this context, he invited our attention to the STP Scheme notified on 22-3-1994, the relevant portion of which reads as under: "Software Technology Parks (STP) Scheme Notification No. S.O. 243(E), dated 22nd March, 1994. In exercise of the powers conferred by subsection (1) of section 3 of the Foreign Trade (Development and Regulation) Act, 1992** the Central Government hereby notifies the following scheme, which is a sequel to resolution No. 17(38)/Comp./84(Part), dated December 18, 1986, of the Department of Electronics announcing the policy on computer software, software development and training and also resolu....
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....cation Nos. 138, 139, 140 and 141 Customs/91, dated 22nd October, 1991 and as amended from time to time. 2.6 The entire software developed by STP unit shall be exported except the sales in the Domestic Tariff Area (DTA). The sales in the DTA shall be permissible upto 25% of the production in value terms made by the STP unit. 2.7 ................ 2.7.1 .............. 2.7.2 .............. 2.7.3 .............. 2.7.4 .............. 2.8 ................ 2.8.1 .............. 2.8.2 .............. 2.9 ................ 2.10 The provisions of paragraphs 111 to 117 of Chapter IX of the Export and Import Policy (1992-97) applicable to Export Oriented Units (EOUS) and units in Export Processing Zones (EPZS) shall also apply mutatis mutandis to STP scheme subject to the following modifications: (a) The words "Development Commissioner" wherever they occur, shall be substituted by the words "Chief Executive of STP Society". (b) The letter "BOA", wherever they occur, shall be substituted by the letters "IMSC" 2.11 Export obligation on the STP unit on net foreign exchange terms in US dollar value will be as follows: Export obligation = 1.5 X (CIF value....
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....ee 5. Chairman, Central Board of Excise and Customs, or his nominee 6. Secretary, Deptt. of Economic Affairs, Ministry of Finance or his nominee 7. Secretary, Planning Commission or his nominee 8. Economic Adviser, Department of Electronics 9. Secretary, Department of Small Scale Industries and Agro and Rural Industries or his nominee 10. Joint Secretary, Department of Electronics, Member-Secretary. Functions of the Inter-Ministerial Standing Committee : (i) The Committee shall consider all applications for setting up of units in the Electronic Hardware Technology Parks (EHTP) under the scheme of special facility (hereinafter referred to as the said scheme framed under the Government of India, Ministry of Commerce, Notification No. 42 (N-8)/1992-97 dated the 14th September, 1992). The Committee shall also consider all applications for setting up of units under Software Technology Park Scheme operated under customs Notification Nos. 138 and 140 dated 22-10-1991. The Committee shall consider proposals for industrial licence, foreign technical collaboration agreements and import of capital goods. The Committee shall not consider applications involving foreign e....
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....4.11 at page 517 of the Manual for Foreign Collaboration and Investment in India which contains the following : "A. Manufacture 1. All-regulatory measures concerning manufacture like scrutiny of applications for letters of Intent, Industrial Licences, Foreign Collaboration, Phased Manufacturing Programmes (PMP) and CG & Raw material imports, will be exercised by the existing Inter Ministerial Standing Committee (MSC) under the Department of Electronics (DOE) which has been designated for this extended purpose. The Computer, Computer-communication and Instrumentation (CCI) Wing of the Department of Electronics will continue to be the Secretariat for this committee. All applications should also be made directly to the CCI Wing of DOE." In the light of the above, it is contended that Inter Ministerial Standing Committee under the Department of Electronics is authorised to consider all licences relating to computer or software units and so it is claimed that the approval by the Inter-Ministerial Standing Committee tantamounts to approval by Board under clause (i) of Explanation to section 10B of the Act. 14. The learned counsel for the assessee also filed before us a copy o....
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....f Explanation to section 10B of the Act. 15. Adverting to another observation of the A.O. that local sales exceeded the permissible limit of 25% of the turnover stipulated in clause (ib) of subsection (2) of section 10B, it is mentioned that this restriction applies only to the undertakings which began to manufacture or producing article or thing on or after 1994 and as the undertaking of the assessee was started in 1991 at Maithrivanam the said clause does not apply. Further its local sales were only 6.64% of the aggregate turnover of both the units i.e. unit at Maithrivanam and unit at Nagarjuna Hills and as such were much less than the stipulated percentage of 25%. 16. The Ld. Departmental Representative, on the other hand, pleaded that a unit under the STP Scheme is totally different from an EOU unit. Units set up under the STP Scheme or the Export Processing Zone or a free trade zone or as EOUs are all separate categories and they are covered under separate incentive schemes. It is mentioned that the assessee was clearly a unit under the STP Scheme and not an EOU unit and so it is stumbling between two stools. It is not eligible for exemption under section 10A of the Act....
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....les, 1952. 17. We are in agreement with the Ld. DR on the issue of exemption of the income of the assessee under section 10B of the Act. Admittedly, there is no specific approval of the assessee as an 100% EOU by the Board referred to in clause (i) of Explanation to section 10B of the Act. It is equally evident that the assessee started as 10096 EOU under STP Scheme vide approval granted by the Department of Electronics dated 26th Sept., 1991. We hasten to add that this does not mean that the assessee is a 100% EOU within the meaning of section 10B of Income-tax Act. For the purpose of 10B of the Act, 100% EOU is only that which is so approved by the Board appointed by Central Government in exercise of powers conferred in section 14 of IDAR Act, 1951. 100% EOU under the STP Scheme cannot, to our mind, be equated with 100% EOU approved by the Board under section 14 of the IDAR Act. The conditionalities that govern units set up under STP Scheme are different from those that govern the units set up as 100% EOUs and so approved by the Board. Some of the conditionalities are common and overlapping but other conditionalities like the satisfaction of employment criteria, foreign exchan....
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....n this behalf by the Director General of Foreign Trade. Private bonded warehouses 115. Private bonded warehouses may be permitted to be set up in EPZs for stock and sale of duty-free raw materials, components etc., to EOUs and EPZ units subject to the following conditions: (a) The private bonded warehouses shall be located within the EPZ; (b) Imports for such private bonded warehouses shall be made only against specific licences. No licence shall be given to import items which are not required by the consuming units; and (c) The items imported by the private bonded warehouses shall not be permitted to be sold in the DTA. Period of bonding 116. The bonding period for units under the EOU Scheme shall be 10 years. The period may be reduced to 5 years by the BOA in case of products liable to rapid technological change. On completion of the bonding period, it shall be open to the unit to continue under the scheme or opt out of the scheme. Such debonding shall, however, be subject to the industrial policy in force at the time the option is exercised. De-bonding 117. Subject to the approval of BOA, EOU/EPZ units may be debonded on their inability to achieve expo....
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....s quite clear that the Board has not been replaced by the Inter Ministerial Standing Committee, for the purpose of granting approval as 100% EOU within the meaning of clause (i) of Explanation to section 10B of the Act. If there is any change as claimed by the assessee, there would have been a reference to the Inter Ministerial Standing Committee atleast under clause (4) of Explanation of the amended provisions of section 10B inserted with effect from 1-4-2001 which exactly reproduces the definition of 100% EOU as given in clause (i) of Explanation to the pre-amended provisions of section 10B which we have reproduced hereinabove. It cannot be assumed that the Legislature is unaware of such replacement as claimed by the assessee before us. 19. Further, para 93 of Chapter IX of EOUs and units in export processing Zones (Export and Import Policy 1992-97) reads as under: "Eligibility 93. Units undertaking to export their entire production of goods [except the sales in the Domestic Tariff Area (DTA)] as may be permissible under the Policy may be set up under the Export Oriented Unit (EOU) Scheme or Export Processing Zone (EPZ) Scheme, such units may be engaged in manufacture, p....
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....of the Act to the STPs from 1-4-1994 becomes redundant or superfluous. If a STP unit is otherwise eligible for exemption under section 10B of the Act on the ground of its being 100% EOU, there was possibly no reason for the Legislature to bring about an amendment extending the benefits of section 10A to the units under STP Scheme and, further, restrict the benefits to those commencing their operations in the year of account relevant to the assessment year 1994-95. If the plea of the Ld. counsel for the assessee is accepted, the restriction of the exemption of income to the units that commence operations in the year of account relevant to the assessment year 1994-95 gets automatically defeated because STPs which had commenced their operations on or before the stipulated date as mentioned above, become in any case eligible for exemption under section 10B of the Act. We do not find any reason to attribute such a self-defeating exercise to the Legislature. 21. Regarding the plea of the learned counsel for the assessee that an STP unit may also be an EOU and vice versa, it may be so. But it requires compliance with the rules of both the schemes and in the absence of compliance with b....
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....e from domestic operations. It has been clarified that the concerned section has wrongly been mentioned as section 80-I in the grounds taken before us and also in the order of CIT(A) and also by the A.O. It is claimed that the assessee is entitled for the deduction in respect of this income from domestic sales in terms of section 80-IA(2)(iv)(a) which reads as under: "(iv)(a) in the case of an industrial undertaking not specified in sub clause (b) or sub-clause (c), it begins to manufacture or produce articles or things or to operate such plant or plants, at any time during the period beginning on the 1st day of April, 1991 and ending on the 21st day of March, 1995 or such further period as the Central Government may, by notification in the official Gazette, specify with reference to any particular industrial undertaking;" 25. The CIT(A) denied the claim for deduction under section 80-I with the following observations : "I have considered the submissions but I am not persuaded to accept the same. One of the prerequisites for getting deduction under section 80-I is that the industrial undertaking should manufacture or produce article or thing. In the present case, appellant....
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....expression is meant for all purposes of the Act and is not restricted to any section. Therefore, this decision of jurisdictional High Court is not applicable in the instant case. However, it may be observed that the CBDT Circular No. 694 dated 29th Nov., 1994 which we have quoted hereinabove has clearly mentioned that the definition of 'produce' given in sections 10A and 10B of the Act is only clarificatory and that EOUs and software units were eligible for availing exemption under sections 10A and 10B of the Act even for the period prior to the insertion of this expression into the section. According to the view of the Board, a software company produces an article or thing within the meaning of section 10A or 10B of the Act even before the insertion of the definition of 'produce' w.e.f. 1-4-1994. So it must be held that a software company produces an article or thing within the meaning of section 80-IA, as this section also uses the expression 'produce an article or thing' which is the same as that figuring in sections 10A and 10B. In other words, even without any resort to the inclusive definition of 'produce' given in sections 10A and 10B of the Act, software company is entitled....
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.... assessee was asked to explain as to why this expenditure should not be disallowed as not being relatable to assessee's business. The assessee has filed the same explanation as discussed in the preceeding para. However, since, this expenditure is in the nature of personal expenditure, the same is disallowed in the hands of the company ...... Rs. 7,92,601" The CIT(Appeals) upheld the action of the Assessing Officer with the following remarks : "5. The next ground of appeal is directed against disallowance of expenditure of Rs. 58,175 and Rs. 7,92,601 on foreign travel and training fees of Sri BGV Krishna. Sri BGV Krishna happens to be the son of the Managing Director of the appellant company. The Assessing Officer disallowed the expenditure on the ground that the expenditures were personal in nature and could not be considered as business expenditure. The AO has made detailed discussion in this regard in the assessment order. 5.1 Before me, the Ld. AR of the appellant had argued that Sri BGV Krishna was sponsored for foreign education with the clear understanding that on completion of the course, he would serve the appellant company. The learned AR had pleaded that the enti....
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....ne Lakh only) per annum in a span of five years. In addition to the above he is eligible for margin based commission on Sales, entitlement to participate in company's health plan, pension scheme, encashment of leave and reimbursement of transport expenditure as per company's policy." In the light of the above, it is claimed that the Company was completely justified in financing the education and travel of Mr. BGV Krishna abroad because there was already an undertaking that Mr. Krishna would take up the employment with the assessee company. It is also claimed that it is not for the revenue to judge as to how the assessee should conduct its business. 28. We are afraid, we do not agree with the plea taken by the learned counsel for the assessee. It is observed by the CIT(A) that Sri BGV Krishna is the son of the Managing Director and he is not connected to the assessee-company in any way and his foreign tour and education is not shown to have been financed under any scheme or policy of the company. At the time of financing him, there was no agreement between him and the company about any future employment. Therefore, financing the foreign education of Sri BGV Krishna is totally ....
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.... The CIT(A) is not justified in holding that the interest earned on fixed deposit (Rs. 32,15,465) interest on staff loan (Rs. 51,403) and income from miscellaneous receipts (Rs. 55,625) are not income derived from the business of the assessee. 4. Without prejudice, the CIT ought to have allowed the interest paid of Rs. 29,29,215 from the foregoing receipts before excluding the same from export business income for the purpose of relief under section 80HHE. 5. For these and any other grounds that may be urged before the time of hearing it is prayed that the income of the assessee be exempted under section 10A or section 10B of Income-tax Act and alternatively that only net interest be considered for the purpose of computing relief under section 80HHE of Income-tax Act." Even for this year, there is variation between the grounds accompanying in form No. 36 and the grounds taken before us. In the course of hearing, the assessee mentioned that the unit at Nagarjuna Hills is only an extension of the earlier unit at Maithrivanam which was set up in the year 1991 and the income from the entire operations of the company is entitled for exemption under sections 10A and 10B of the Ac....