2018 (9) TMI 774

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....ppeal, but essentially, the grievance of the assessee is on three counts, which we shall deal in seriatim. 3. The appellant before us is a company incorporated under the Companies Act, 1956 and, is inter alia, engaged in the business of manufacturing and marketing of agro chemicals. As per the orders of the authorities below, it transpires that the assessee has six manufacturing units and one of them (viz. Taloja Unit) was eligible for exemption u/s. 10B of the Act. The learned representative explained that Taloja unit was set up as 100% Export Oriented Unit (EOU) during the previous year relevant to A.Y. 1999-2000 and so far as the entitlement for exemption u/s. 10B of the Act is concerned, there is no dispute. The only grievance is that ....

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.... on the judgment of Hon'ble Supreme Court in the case of Liberty India [2009] (317 ITR 218), which is distinguishable. It was pointed out that in the following decisions the claim of deduction u/s. 10B/10A of the Act has been allowed after considering the decision of Hon'ble Supreme Court in the case of Liberty India (supra): * CIT vs. Hewlett Packard Global Soft Ltd. (2017)87 taxmann.com 182(Kar) (FB) * CIT vs. Arts & Crafts Exports (2012) 66 DTR (Bom) 85 * CIT vs. Hindustan Gum & Chemicals Ltd. (2016) 241 Taxman 0401 (Calcutta) * Riviera Home Furnishing vs. Additional CIT (2016) 138 DTR (Del) 149 * Wipro Ltd. vs. DCIT (2016) 382 ITR 179. Therefore, under these circumstances the claim of the assessee be allowed. 5. On the other....

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.... the business of its 100% EOU, which is eligible for benefits of section 10B. So long as such income constitutes profits and gains of business of the eligible undertaking, the same would fall within the scope of expression 'Income from profits and gains' incorporated in section 10B(4) of the Act. In view of the aforesaid and also the order dated 16.07.2010 of the Tribunal in assessee's own case for A.Ys 2003-04 and 2004-05, claim of the assessee deserves to be accepted. We hold so. At this point we may also note that the Hon'ble Karnataka High Court in the case of CIT vs. Motorolo India Electronics (P) Ltd. (supra) considered and distinguished the case of Liberty India, which has since been relied upon by the CIT(A) before us. In this backg....