TaxTMI 
TaxTMI 
2015 (2) TMI 670
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....der section 10A amounting to Rs. 11,58,99,954. The said claim was in respect of the units situated at different places in Bangalore and Chennai. During the assessment proceedings, the assessee was asked to file details of STPI registration dates, customs approval for setting bonded warehouse, date of commencement of production, etc. The assessee-company furnished all the particulars. The particulars furnished showed the date of commencement of production and date of initial registration with the STPI are on the same day. One of the primary conditions stipulated in section 10A is that the undertaking should have been newly formed after registration with STP. The relevant provision, namely, section 10A(2)(i) reads as under : &nbs....
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....ction 10 only if production commences in the customs bonded area after such permission. As the assessee commenced production before that date the assessee is not entitled to the benefit. Accordingly, the claim for exemption was denied to the assessee. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals)-I, Bangalore, who set aside the order of the assessing authority and allowed the appeal holding that all the four units of the assessee have begun manufacture/purchase of computer software during the previous year relevant to the assessment year commencing on or after April 1, 1994, in a software technology park. All the four STP units are newly established undertaking situated under diffe....
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....w : (a) Whether the appellate authorities were correct in holding that the assessee was entitled to claim deduction under section 10A of the Act, in respect of its units despite the assessee failing to satisfy the conditions stipulated in the STPI Scheme which stipulated commencement of units from a particular date when the assessee's unit had already commenced much before obtaining the licence for the bonded warehouse ?" From the aforesaid facts, it is clear that the assessee-company has set up its unit in the software technology park and had applied to the STPI autho rities for approval. Unit I was approved on November 11, 1995. Unit II was approved....