TaxTMI 
TaxTMI 
2014 (8) TMI 1123
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....ide to dispose off these appeals by this common order. 2 For the sake of convenience, we consider the facts narrated in ITA No.97/Coch/2014. In this appeal, the assessee claimed deduction u/s 10B of the I T Act instead of sec. 10A of the Act. The AO without considering the facts granted exemption u/s 10B of the Act. Being so, the CIT, by invoking provision of sec. 263 directed the AO to withdraw the said exemption. Aggrieved, the assessee is in appeal before us. 3 The ld counsel for the assessee submitted that the AO allowed the claim of the assessee u/s 10B duly verified the documents and hence the AO has fully applied his mind. It was submitted that the CIT was wrongly observed that the AO has committed error in law by not following....
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....Haryana High Court in the case of CIT vs Excel Softech Ltd reported in 219 CTR 405 which had allowed deduction u/s 10B on the basis of registration with STPI. It was contended that the decision of the Delhi High Court in the case of Regency Creations Ltd is not therefore, mandatorily binding in the state of Kerala considering that there is a contrary decision of Hon'ble Punjab & Haryana High Court on the same issue. Therefore, it was submitted that the AO has not committed any error in law as stated by the CIT. Accordingly, it was pleaded that the order of the CIT may be set aside as being not in accordance with the provisions of sec. 263 of the act. Further, he submitted that there is a recent judgment from the Hyderabad Bench of the Tribu....
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.... Industries (Development and Regulation) Act, 1951, for purposes of approvals under section 10B. Though the considerations which apply for granting approval under sections 10A and 10B may to an extent, overlap, yet the deliberate segregation of these two benefits by the statute reflects Parliamentary intention that to qualify for the benefit under either, the specific procedure enacted for that purpose has to be followed. There is nothing in any of the circulars or instructions relied on by the Tribunal in all the orders, implying that approval for purposes of an STP also entitled the unit to a benefit under section 10B. The orders of the Tribunal are consequently erroneous, and its reasoning, unsupportable. In the light of the abo....
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....here so far as 10A is concerned. In a case of similar nature, the ITAT, Hyderabad Bench in ITA No.577/Hyd/10 in case VNS Macro Technologies Pvt. Ltd., Hyderabad while holding that the assessee is not entitled to avail exemption u/s 10B,however directed the AO to examine the issue of allowance of deduction u/s 10A, if the assessee is entitled for such deduction. The ITAT held in the following manner:- "10. We have heard both the parties and perused the materials available on record. The contention of the assessee's counsel is that the assessee is 100% EOU entitled for exemption u/s 10A and wrongly claimed the deduction u/s 10B and it was a technical mistake in claiming deduction u/s 10B. The assessee's counsel further argued that th....
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.... accordingly." Following theaforesaid order, we restore the matter to the file of the AO directing him to examine as to whether the assessee is entitled to deduction u/s 10A or not. It is open to the assessee to file evidence in support of deduction u/s 10A. If the AO ultimately comes to a conclusi9on that the assessee entitled to deduction u/s 10A, then such deduction shall be allowed to the assessee. The AO shall afford a reasonable opportunity of being heard to the assessee before completing the proceedings. 6. Ground Nos. (iv) and (v) relate to the claim of depreciation on software developed by Directors and software purchased from Oasis Infotech Limited which are allowed by the CIT (A). 7. At the outset, the learned A....