TaxTMI 
TaxTMI 
2018 (9) TMI 1415
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.... for the Assessment Year 2007-08 was taken in scrutiny. Even in such scrutiny assessment, the petitioner's claim for deduction under section 10B was granted. This return was, however, subjected to reassessment. During such reassessment proceedings, the Assessment Officer objected to petitioner's claim of deduction under section 10B of the Act on the ground that the petitioner did not have approval from the prescribed authority. It appears that the petitioner had put up an alternative claim under section 10A of the Act. The petitioner also filed a petition before this Court, being Special Civil Application No.12767 of 2017 and disputed the very reopening of the assessment. This petition was allowed by a judgment dated 04/09/2017 holding the reassessment to be bad. 2.03. For the Assessment Year 2008-09, deduction under section 10B was claimed and granted after scrutiny. For the Assessment Year 2009-10, deduction under section 10B of the Act was claimed in the return filed, but during the assessment, the case was put up for deduction under section 10A of the Act which was granted. Likewise, in the Assessment year 2010-11 in the return filed, claim was made under section 10B of the ....
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.... reasons for reopening are as under :- In this case the assessee filed return of income for the A.Y. 2010-11 assessment year on 28.09.2010 declaring total income of Rs. 3522840/- after claiming the deduction u/s. 10A of the Act of Rs. 34292151/- in respect of its Ahmedabad unit of Rs. 15347631/- in respect of its Chandkheda unit and Rs. 35,19,956/- Cochin unit. The said return was processed u/s.143(1) of the Act on 12/02/2009. Order u/s. 143(3) of the Act was passed on 02/06/2010 determining the income of the assessee at Rs. 3522840/-. On verification it is seen that units of the assessee firm are not situated in STP. STPI Gandhinagar is located at Infocity, Gandhinagar. An STPI is established to provide various facilities to 100% computer software exporting units situated in the STP centre as well as to standalone units can get registration from the STPI for getting various benefits under the STP scheme. However, 100% deduction from tax u/s.10A(2)(i)(b) is not available as standalone units. Further, if a unit has claimed deduction u/s. 10B at the start of claiming deduction it cannot switchover to section 10A in midway as both sections stipulates continuous period of dedu....
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....reasons recorded by him for issuing such notice within 30 days of the filing of the return by the assessee without waiting for the assessee to demand such reasons. (ii) Once the assessee receives such reasons, he would be expected to raise his objections, if he so desires, within 60 days of receipt of such reasons. (iii) If objections are received by the Assessing Officer from the assessee within the time permitted hereinabove, the Assessing Officer would dispose of the objections, as far as possible, within four months of date of receipt of the objections filed by the assessee. (iv) This is being done in order to ensure that sufficient time is available with the Assessing Officer to frame the assessment after carrying out proper scrutiny. The requirement and the time-frame for supplying the reasons without being demanded by the assessee would be applicable only if the assessee files his return of income within the period permitted in the notice for reopening. Likewise the time frame for the Assessing Officer to dispose of the objections would apply only if the assessee raises objections within the time provided hereinabove. This, however, would not mean ....
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.... policy, acts and rules as lay down by respective Ministry while framing the scheme of the development of the Unit established under the Software Park of India and Special Economic Zone. And in respect of the same our submissions are as under :- 1. According to them the approval to set up a unit at SEZ and STPI are under Automatic Route. No specific reply or approval letter they have forwarded to the unit established under the specified STP/SEZ Act/Rules. We herewith submitting the Rules specified under the respective Act/Rules. 2. It is further state that the assessee gets its renewal in both units and hence it is established that the unit already gets the approval of Board. Further the Board as per rules laid down if not ratify the Development Commissioner permission in that case Development Commissioner either cancel its registration or will not renew the permission. Further under the respective act unit is not enjoying any right to get ratification letter from the respective board and the ratification letter is the matter between the Development Commissioner and respective Board. Hence it is easily presumed that Development Commissioner will take necessary act....
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....e assessee. No requirement can be read into the provision of s.10A/10B of the Act to the effect that exemption, once claimed has to be necessarily thrust on the assessee in subsequent years. To read such restriction would be doing violation of the language of the section. A reliance in this regard can be placed on the decision of Supreme Court in the case of CIT V/s. Mahendra Mills (2000) 159 CTR (SC) 381 : 243 ITR 56 (SC) wherein it has been held that depreciation cannot be thrust upon the assessee in the absence of the claim made by the assessee in this behalf or on the assessee having withdrawn the claim by filing a revised return. 7. Software Technology Parks are required to be approved by inter ministerial standing committee of Development of Electronics as per STPI Scheme Notification No.4 (RE 95/92-97) dated 30.04.1995. But due to automatic route of approval of the STPI unit according to section the CBDT issued by the instruction No.1 of 31.03.2006 clarifies that STP is unit approved by Directors of STPIs should not be denied only for the above reasons. 8. In the case of Infotech Enterprises Ltd. v. JCIT (2003) 85 ITD 325 (Hyd) it was held that for the purp....
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....PI, Gandhinagar covered u/s 10A (2)(i)(b): As submitted earlier reply w.r.t. documents for claiming deduction under section 10A w.r.t. sub-section (1) and (2) both the unit newly established i.e. Ahmedabad (Main) and Chandkheda Unit started its production on 14.01.2002 and 01.04.2007. It is further stated the letter of approval (LOPs) from STPI issued on 8.01.2002 and 12.06.2006. Hence the all units qualifies under section 10A. According to section 10A(5) we herewith attached the report certified by Kishor Goyal & Co. Chartered Accountant firm for your kind perusal. We herewith reproduce the section 10A for your kind appraisal. xxx xxx xxx" 5.06. In the order of assessment that the Assessing Officer passed after such scrutiny on 20/12/2012 with respect to petitioner's claim of deduction under section 10A of the Act, with respect to its different Units, he made the following observations :- "2. The assessee has three units, two at Ahmedabad and one at Cochin. The turnover of the assessee firm is of Rs. 12,84,08,375/-, Rs. 1,95,41,341/- and Rs. 6,34,97,979/- in respect of Ahmedabad branch, Chandkheda branch and Cochin branch respectivel....
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.... or unscrutinized. He wanted to be specific about the assessee's claim for deduction and therefore, he raised queries in respect to the same in response to which the assessee, as noted, placed number of documents and materials on record. Principally, the assessee pointed out that it has been granted certification by STPI under the Software Technology Parks Scheme. The assessee also supported the claim on merits pointing out that the Development Commissioner had granted certificate of commencement and that foreign exchange remittances were made within six months from the end of the financial year. After such scrutiny, the Assessing Officer passed the original order of assessment in which he did not reject the claim of deduction under section 10B of the Act. In fact, he accepted the claim substantially making minor disallowance to the extent the assessee had not received foreign exchange payment within the prescribed period. 11. It can thus be seen that the assessee's claim of deduction under section 10B of the Act was examined minutely by the Assessing Officer. The assessee pointed out that it enjoyed certification under STPI. If the Assessing Officer was of the opi....