TaxTMI 
TaxTMI 
2017 (9) TMI 1752
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....me Tax Act. 2. Brief facts are as under. The petitioner is a partnership firm and is engaged in export of Back Office Operation and computer software. The petitioner had filed the return of income on 30.10.2007 declaring a total income of Rs. 98,360/-. In the return, the petitioner had claimed deduction under section 10B of the Income Tax Act ("the Act" for short). Return was taken in scrutiny by the Assessing Officer. During such scrutiny assessment, he had raised several questions with respect to the petitioner's claim of deduction under section 10B of the Act, in respect to which the petitioner had replied under an undated communication (Annexure-B) as under: "2. Documents relevant with the STPI and Cochin SEZ, Kakkana....
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....;s claim of deduction under section 10B of the Act, he made a limited disallowance of a sum of Rs. 2,45,418/to the extent the remission was not made on the export transaction within six months from the end of financial year. This can be gathered from the order of assessment, relevant portion of which reads as under : "8. Deduction Allowable u/s 10B The assessee has claimed deduction u/s 10B of the Income Tax Act @ 100% of profit on its export turn over. During the assessment proceeding it is noticed that the realized of the some export transaction, having amount of Rs. 2,45,418/have not received with in the six month from the end of the financial year. Accordingly, the revised working of the allowable deduction is as under....
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....pecial provisions in respect of newly established hundred per cent export oriented undertakings enables an assessee for a deduction from total income. For the AY 200708, the assessee claimed the deduction u/s 10B of the Act for an amount of Rs. 5,12,42,970/as a newly established hundred per cent export oriented undertaking. Clause(iv) of Explanation 2 for the purpose of section 10B of the Act states as to hundred per cent export oriented undertaking as under : - (iv) 'hundred per cent exportoriented undertaking' means an undertaking which has been approved as a hundred per cent exportoriented undertaking by the Board appointed in this behalf by the Central Government in exercise of powers conferred by section 14 of the Indu....
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....er of assessment on 25.3.2015 disallowing the petitioner's claim of deduction under section 10B of the Act on the ground that the assessee had not fulfilled the requirement of being a 100% exportoriented undertaking since it did not enjoy the approval by the Board appointed by the Central Government under the Industries (Development and Regulation) Act, 1961. 6. The petitioner challenged the order of assessment before the Commissioner in a revision petition filed under section 264 of the Act. The Revision petition came to be dismissed by the Commissioner by the impugned order dated 9.3.2017. Before the Commissioner also, the assessee had argued that reopening of the assessment itself was bad in law. This was in addition to the assess....
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....m of deduction under section 10B of the Act to the extent the assessee failed to receive foreign exchange remittance within the prescribed period. It was thereafter not open for the Assessing Officer to examine the claim which would be based on mere change of opinion. Counsel submitted that deduction under section 10B of the Act is available for successive ten years from the commencement of the activity. Assessment year 20072008 was not the first year of commencement. The assessee had raised such claim continuously from inception from the year 2003 onwards. All such claims were granted without disturbing the initial order of assessment. It was not open for the Assessing Officer to disturb the claim in the later year. 8. On the other h....
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....efore, 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 th....