TaxTMI 
TaxTMI 
2014 (7) TMI 806
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.... of manufacture of Analytical Instruments and also having a BPO filed its return of income on 24.10.2007, admitting a loss of Rs. 3,68,67,971 under normal provisions and Rs. 41,18,504 under S.115JB of the Act. Assessment was completed under S.143(3)of the Act, assessing the loss of Rs. 2,60,81,092 under normal provisions and at Rs. 59,45,100 under S.115JB of the Act. 3. The Commissioner of Income-tax, while perusing the assessment record, noticed in the context of its claim for exemption under S.10B of the Act, that the assessee had not obtained statutory approval from the Board appointed in that behalf by the Central Government as required under S.14 of the Industries (Development and Regulation) Act, 1951 for claiming status of an 100%....
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....t the assessee had truly disclosed all the material facts concerning the claim under S.10B/10A and did not withhold any material facts or information. At the time of assessment proceedings, it was claimed that the assessee was not aware that it ought to have furnished From 56F and not Form 56G for the purpose of availing the exemption against the export income of BPO Division. It was as such pleaded that it was a case where the exemption was claimed under an incorrect section, instead of the correct section under which the assessee was eligible. It was therefore, submitted that the error in the assessment order passed was not prejudicial to the interests of the Revenue, and hence the same did not warrant the assessment to be revised or set ....
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.... 5. Aggrieved by the above order of the Commissioner of Income-tax passed under S.263 of the Act, assessee is in second appeal before us. 6. We heard both sides and perused the orders of the Revenue authorities and other material available on record. There is no dispute that the assessee has claimed exemption in respect of its income under S.10B of the Act, and the same has been allowed by the Assessing Officer while completing the assessment under S.143(3) of the Act. When the Commissioner of Income-tax initiated the proceedings under S.263 of the Act, assessee pleaded inadvertence in preferring the claim for exemption under S.10B instead of under S.10A, and it accordingly sought to amend its earlier claim by making fresh claim or an e....
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.... the more necessary that the quantum of relief, if granted, would remain the same, whether it was granted under S.10A or under S.10B of the Act, and as such would have not resulted in any enhancement in the income assessed. 7. In the case of Vision 2K+Inc. Hyderabad (ITA No.696/Hyd/2010 for assessment year 2005-06), in the context of revisionary powers exercised under S.263 of the Act under similar circumstances, coordinate bench of this Tribunal, vide its order dated 21.1.2011, has decided the matter in favour of the assessee in the following manner- "6. ....We find that it is admitted fact that the assessee has obtained the approval from STPI, Hyderabad as 100% EOU. The CIT's finding is that the assessee is not eligible for relief u....
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....U under STPI cannot be equated with 100% EOU approved by the Board, the said decision is distinguishable from the facts of the present case, inasmuch as in the facts of the present case, the claim of the assessee right from the beginning was that the claim made under S.10B instead of under S.10A was due to inadvertence. In this view of the matter, the assessment made allowing the claim under S.10B of the Act may render the assessment to be erroneous. However, in the absence of any finding by the Commissioner of Income-tax that the assessee is not eligible for relief under S.10A, under which the assessee should have made the claim, it cannot be said that the assessment is also prejudicial to the interests of Revenue. It is settled position o....