AI Drafter 
TaxTMI 
TaxTMI 
2014 (11) TMI 596
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..../s 80 HHE, claimed in the original return. 3. The Assessing Officer held that the Assessee is not eligible for deduction under sec.10A. The assessee, in support of the plea for claiming deduction under sec.10A, filed a copy of the communication dated 4.3.2000 from the Software Technology Parks of India (STPI) (an autonomous society under Government of India, Ministry of Information and Technology) according permission for setting up of 100% EOU to bear the claim of total export turn over of Rs. 5,46,77,452/-, and submitted that the profits thereon are entitled to the benefit under Sec.10A of the Act. According to the Department, the assessee is entitled to the benefit of deduction under sec. 10A only from 4.3.2000. 4. Insofar as the claim for export turn over prior to 4.3.2000, the Department contended that the assessee will be entitled to seek deduction under sec.80HHE. The Assessing Officer, considering the total turn over and export total from STPI, allowed the expenditure attributable to STFI unit as enumerated by the Appellate Authority is as follows: "The Assessing Officer has taken into consideration the total turnover and export turnover from STPI....
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....ear rent received or receivable for the period it was let out only is taken as 'Annual value' Hence the assessee's contention on this point are misplaced and without merit and deserve to be rejected. 4. The board has asked a Circular No.1/2005 dt.6.1.2005 regarding the allowance of tax holiday under section 10B of the Act. In this circular it is clarified that 'an undertaking set up in domestic tariff Area (DTA) and deriving profit from export of articles or things or computer softward manufactured or produced by it which is subsequently converted into a EOU shall be eligible for declaration under section 10B of the Income Tax Act on getting approval as 100% EOU in such a case the deduction shall be available only from the year in which it has got the approval as 100% EOU and shall be available only for the remaining period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begin to manufacture or produce articles or things or computer software as a DTA unit. Further in the year of approval the deduction shall be restricted by the profits derived from exports from and aftr the date of appr....
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....ts attributable to the export turnover for the entire previous year relevant to the assessment year 2000-01 even though registration from the Software Technology Parks of India (STPI), as an STPI unit was obtained only on 04.03.2000 and the Assessing Officer was not correct in restricting the deduction to the export profits relating to the turnover of the period after the date of registration as certified by the STPI? 9. It was contended that Sec.10A provides that any profits or 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 and this section applies to any industrial undertaking which fulfills all the following conditions and the section reads as follows; "10A (1) Subject to the provisions of this section, any profits or 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 rel....
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....in an area designated as STP Complex by the Department of Electronics." .... 2.8 The STP unit shall be eligible for the following benefits. 2.8-1 Tax holiday The STP will be exempted from payment of corporate income-tax for a block of five years in the first eight years of its operation. 12. From the reading of Sec.10A(2), it is clear that this section applies to any industrial undertaking which fulfills the conditions viz., it should begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year and it should be notified by the Government of India, Ministry of Commerce. 13. In the present case, we find that the assessee Soffia Software Limited has been notified on 04.03.2000 and the assessee has commenced its software production during the previous year related to the Assessment Year. From the date of notification, the assessee would be entitled to the benefit of Sec.10A if other conditions have been fulfilled. 14. The Tribunal, in paragraph-7 of the Order, came to the conclusion that in Section 10A, nowhere there is a restriction provided that deduction may be applicable ....