AI Drafter 
TaxTMI 
TaxTMI 
2010 (9) TMI 1087
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....me-tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 19-12-2008 for assessment year 2005-06. 2. The first issue in this appeal of Revenue is against the order of CIT(A) exempted an amount of Rs. 8,40,35,068/- u/s.10B of the Act. For this, Revenue has raised the following ground No.1:- "1. The Ld. CIT(A) has erred in law and on the facts in holding that the assessee is entitled for exemption u/s.10B of Rs. 8,40,35,068/- in respect of the Ahmedabad undertaking." 3. At the outset Ld. SR-Counsel for the assessee, Shri S.N.Soparkar stated that this issue is covered in favour of assessee and against the Revenue by the decision of this Tribunal in assessee's own case in ITA No.4005/Ahd/2003 dated 30-05-2008 f....
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.... of a business already in existence except in the circumstances specified under section 33B of the IT Act ; iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. 3. Representations have been received from various quarters as to whether an undertaking set up in Domestic Tariff Area, which is subsequently approved as 100% EOU by the Board appointed by the Central Government in exercise of powers conferred under Section 14 of the Industries (Development and Regulation) Act, 1951, is eligible for deduction under section 10B of the Income-tax Act. 4. The matter has been examined and it is hereby clarified that an undertaking set up in Domestic Tariff Area (DTA) a....
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....tion shall be available only for the remaining period of EOU. Further, the deduction shall be available only for the remaining period of ten years i.e., from assessment year 2005-06 to assessment year 2009-10. This deduction under section 10B for assessment year 2005-06 shall be restricted to the profits derived from exports, from and after the date of approval of the DTA unit as 1005 EOU. ii) Undertaking 'B' set up in Domestic Tariff Area, begins to manufacture or produce computer software in financial year 1996-97 relevant to assessment year 1997-98. It gets approval as 100% EOU in financial year 2007-08 relevant to assessment year 2008-09. No deduction under section 10B shall be admissible to undertaking 'B' as the period of 10 ....
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....lf has permitted an undertaking set up in Domestic Tariff Are (DTA) and deriving profit from export of articles or things or computer software manufactured or produced by it and which is subsequently converted into a EOU, deduction under section 10B of the IT Act on getting approval as 100% export oriented undertaking. The deduction is available from the year in which it gets the approval as 100% EOU and is 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 begins to manufacture or produce articles or things or computer software, as a DTA unit. In the light of this Circular and the findings of ld. CIT(A), with which we agree, ....
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....s stage that permission of Excise Authorities has not been obtained before exports, is quite contrary to facts on record. In any case no basis has been adduced before us for such a plea. 7.9 In view of the foregoing, we do not find any infirmity in the findings of Ld. CIT(A) and consequently uphold his order and reject the grounds raised by the Revenue." From the above, it is seen that the issue is exactly covered by the Tribunal's decision (supra), respectfully following the same, we dismiss this issue of the Revenue's appeal. 4. The next issue in this appeal of Revenue is against the order of CIT(A) in allowing exemption u/s 10B of the Act for Pune Undertaking. For this, the Revenue has raised the following ground No.....
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.... the appellant has replied that it is not the requirement that exports have to be made only after acceptance of Softex by STPI and that the filing of Softex form is to be done only after the exports have taken place. This is found to be correct as per the guidelines of RBI. As regards the observation of the A.O that the Export Realisation of Pune Undertaking has been deposited in Ahmedabad Unit's Bank A/c, the A.R has replied that in the Foreign Inward Remittance Certificate issued by Axis Bank for Pune Unit, though the same was issued by Head Office of Axis Bank, the Account No. of Pune Unit has been mentioned. The A.R has furnished copies of letter dated 17-12-2007 and certificate of Pune Unit Banker's viz Axis Bank dated 05-01-2008 which....