2008 (7) TMI 979

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....n of law: "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in affirming the order of the CIT(A) in directing the Assessing Officer to allow deduction under section 10B of the Income-tax Act, 1961 in spite of the fact that the assessee company has not fulfilled the conditions laid down under section 10B of the Income-tax Act, 1961 as it was not a newly established undertaking ?" 2. The brief facts of the case are that the assessee who is 100 per cent export-oriented undertaking, is engaged in the business of export of computer software. It started production during the year relevant to assessment year 1998-99. In the year under consideration i.e., 2001-02, the assessee claimed exemption under section....

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....assessee, while observing that the assessee satisfies all the conditions necessary for claiming exemption under section 10B of the Act. It was held that the claim under section 10B of the Act is available for a period of 10 years starting with the assessment year in which the unit starts to manufacture. Therefore, the assessee was entitled for the said benefit up to the year 2007-08. It was further held that it was optional for the assessee to either claim the exemption under section 10B or deduction under section 80HHE of the Act in relation to its export profits. Since in the year under consideration, the assessee has not claimed deduction under section 80HHE of the Act, therefore, it was entitled to claim exemption under section 10B of t....

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....see." The aforesaid provision provides that subject to the provisions of this section, a deduction of such profits and gains as are derived by a hundred per cent export-oriented undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee. Sub-section (2) provides that this section applies to any undertaking which fulfils certain conditions, mentioned in this sub-section itself. The exemption under this section is available for 10 years. The initi....