TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 1575
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.... law:- "Whether the Tribunal was justified in allowing deduction u/s 10B of the Act amounting to Rs. 1,34,31,888/- in the 11th assessment year, when the provisions of Section 10B(1) specifically entitles the assessee for the said deduction only for period of 10 consecutive assessment years beginning with the Assessment year relevant to the previous in which the undertaking commences its manufacturing, which in the present case A.Y. 2001-02 as the manufacturing started from 12.3.2001?" 3. The facts of the case are that the assessee commenced its production from 12.3.2001 relevant for the assessment year 2001-02 and thus, was entitled for deduction u/s 10B for 10 consecutive assessment years starting from the A.Y. 2001-02 till A.Y. 2010-11....
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....allowed. 4.2 He has taken us to the judgment of the Supreme Court in Smt. Tarulata Shyam & ors. vs. CIT reported in (1977) 108 ITR 345 wherein Supreme Court observed as under:- "We have given anxious thought to the persuasive argument of Mr. Sharma. His arguments, if accepted, will certainly soften the rigour of this extremely drastic provision and bring it more in conformity with logic and equity. But the language of Sections 2(6A)(e) and 12(1B) is clear and unambiguous. There is no scope for importing into the statute words which are not there. Such import would be, not to construe, but to amend the statute. Even if there be a casus omissus, the defect can be remedied only by legislation and not by judicial interpretation. To us, t....
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....option to have Section 10B made applicable, to withdraw that option, provided such withdrawal was made on or before the due date for filing the return. 6. This Court in assessee's own case in Tax Case No. 302 of 2001 held that in this case, the withdrawal was made along with the return which return had been filed before the expiry of the due date. Hence, applying the ratio laid down by this Court in the abovesaid decision, we do not see any question of law much less substantial question of law that arises for consideration. Accordingly, both the appeals stand dismissed. Consequently, TCMP No. 1347 of 2005 is also dismissed." 5.1 Another decision of Delhi High Court in CIT vs. Nestor Pharmaceuticals Ltd. reported in (2010) 322 ITR 631....
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....in the return itself, that was not treated as exercising the option in a valid manner. Admittedly, in the present case, no amount is invested in any Government securities and, therefore, the Assessing Officer held that there was no question of giving any further deduction on the balance income. In this manner taxable income was assessed. 7. The Assessee filed the appeal against the aforesaid order before the Commissioner of Income Tax (Appeals). The submission was that since it has set apart Rs. 32 Lacs in terms of Section 11A Explanation-II, by exercising this option in the return itself that should be treated as valid option. The CIT (Appeals) accepted this contention, which view has been upheld by the Income Tax Appellate Tribunal as w....
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....of this Act, the profits and gains of an eligible business to which the provisions of sub-section (1) apply shall, for the purposes of determining the quantum of deduction under that sub-section for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such eligible business were the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made". In the above sub-section, which prescribes the manner of determining the quantum of deduction, a reference has been made to the term 'initial assessment year'....
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....should be availed in continuity. The Assessing Officers are, therefore, directed to allow deduction u/s 80IA in accordance with this clarification and after being satisfied that all the prescribed conditions applicable in a particular case are duly satisfied. Pending litigation on allowability of deduction u s 80 IA shall also not be pursued to the extent it relates to interpreting 'initial assessment year' as mentioned in sub-section (5) of that section for which the Standing Counsels/D.R.s be suitably instructed. The above be brought to the notice of all Assessing Officers concerned." 6. We have heard counsel for the parties. 7. On plain reading of Section 10B(1), two things which emerge are that the benefit will start from ....