TaxTMI 
TaxTMI 
2011 (1) TMI 1275
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....demand at Rs. 1,29,88,313/- . 2. The grievance in the assessee appeal in ITA No.1057/H/2010 is with regard to denial of exemption u/s 10B of the IT Act. 3. Brief facts of the issue are that the assessee is engaged in the business of software development. It claimed deduction u/s 10B of the Act at Rs. 2,87,03,825/-. It was noticed by the assessing officer that the assessee was registered with the STPI as 100% EOU. For availing the exemption u/s 10B, the undertaking is required to be 100% EOU and it has to be approved by Board appointed in this behalf by the Central Govt. u/s 14 of the Industries (development and Regulation Act 1951). Since the assessee has not got the approval from the Board as 100% EOU instead it was approved under ST....
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....lied on the judgement of Hon'ble High Court of Calcutta in CIT Vs. Shri Bajrang Electric Steel Company (P) Ltd. (181 ITR 427) to claim that the special deduction u/s 80J can be claimed for the first time in the reassessment proceedings in pursuance of an assessee order, even if it was not claimed in the original assessment order. 6. He submitted that in view of the decision in the case of CIT Vs, Kanpur Coal Syndicate (53 ITR 225), the powers of the Appellate Authority are co terminus with that of the assessing officer. He averred that there was no dispute with regard to export turnover, which is an eligible deduction, both u/s 10B and 10A, and therefore, the assessing officer should have allowed the claim u/s 10A even though the claim h....
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....tive submitted that the assessee failed to satisfy the requirement of section 10B and section 10A & B are operated in a different regulatory context and as such the assessing officer denied exemption claimed by the assessee. There is no merit in the contention of the assessee that both the claims are substantial and that omission to make the correct claim is only technical breach will be apparent from record. According to learned departmental representative the Appellate Authority cannot use plenary power to substitute Form 56F in the place of 56G when the assessee has not obtained the concerned approvals from the Central Govt. Failure to obtain the prescribed rectification of the govt. or obtaining from wrong authority is not a mere techni....
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....in its wisdom prescribed a regime of approvals by separate authorities. Each authority has its separate mandate. As noticed in the case of Infotech Enterprises Ltd. (85 ITD 325) the respective approving authorities are not interchangeable. To overlook this aspect would not be a mere interpretation of the statute, rather it would amount to going beyond the statute. It is also been noticed in the above decision that although some conditionalities were common and overlapping between 10A and 10B units, other conditionalities like satisfaction of employment criteria, foreign exchange etc. are apparently different. Under the circumstances, it has been held that to hold two approvals as substitutable would amount to holding that there was an amoun....