TaxTMI 
TaxTMI 
2016 (6) TMI 695
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....ction 14 of the Industries Development and Regulation Act. 2. Brief facts of the case are that the assessee company, which is engaged in the business of Information Technology and I.T. enabled serviced, filed its e-return of income for A.Y 2011-12 on 28.09.2011 admitting total income at Rs. 75,71,170 under the normal provisions and book profit u/s 115JB at Rs. 1,67,63,185. During the assessment proceedings u/s 143(3) of the I.T. Act, the AO observed that the assessee has claimed export turnover at Rs. 3.71 crores and worked out deduction u/s 10B at Rs. 94,74,578 and the same was claimed. He observed that as per the provisions of section 10B of the Act, the deductin for an 100% EOU has to be approved by the Board appointed on behalf of th....
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....s. Aggrieved, the Revenue is in appeal before us. 3. The learned DR has placed reliance upon the CBDT instructions No.2 of 2009 dated 9.3.2009 wherein it was clarified that section 10B of the Act provides for exemption of income, in case of 100% EOUs subject to fulfilment of prescribed conditions i.e. ratification of the approval granted by the Development Commissioner by the Board of Approvals. It was stated that an approval granted by the Development Commissioner in the case of 100% EOU will be considered valid once such an approval is ratified by the Board of Approval for the EOU scheme. He also placed reliance upon the decision of the Hon'ble Delhi High Court in the case of CIT vs. Regency Creations Ltd (2013) (353 ITR 0326). ....
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....PI and further that vide letter No.1(1)06/IPH dated 7.9.2006, a clarification is issued by the Department of Information Technology, Govt. of India that no further ratification of approvals issued by the Directors of the STPI Unit is required from the Inter-Ministerial Standing Committee (IMSC). Thus, according to the learned Counsel for the assessee, the Board of Approval have been substituted by IMSC and it has been clarified that the ratification is not required from IMS and hence the assessee cannot be denied the deductions u/s 10B of the Act. The learned Counsel for the assessee has also filed before us the copies of a number of judgments of the Hon'ble High Court of Andhra Pradesh and also the Hon'ble Gujarat High Court and de....
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.... as specified in that section. The Tribunal also followed the decision of the Hon'ble Supreme Court in the case of Bajaj Tempo Ltd vs. CIT (196 ITR 88) to hold that section 10B being a special incentive provision should be considered liberally. This decision of the Tribunal in the case of Smt. Sudha Rani has been confirmed by the Hon'ble High Court of Andhra Pradesh vide order No.87 of 2013, dated 25.06.2013 and the CIT (A) has followed the said decision to grant relief to the assessee. Since the Tribunal and the Hon'ble High Court have taken cognisance of the relevant provision of law as well as the CBDT instructions and also letters of the STPI (cited supra), we are of the opinion that the said decision is biding on us. Furthe....