TaxTMI 
TaxTMI 
2019 (1) TMI 598
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....'Tribunal', for short) dated 23.01.2018. 2. The respondent-assessee had 100% Export Oriented Unit (EOU unit) income from which was entitled to exemption under Section 10A of the Act upto the assessment year 2011-12. 3. The respondent-assessee had set up a new unit in Special Economic Zone (SEZ) income from which was claimed as exempt under Section 10AA of the Act for a period of ten years commencing from the Assessment Year 2010-11. Exemption was allowed in the Assessment Years 2011-12 and 2012-13 but was disallowed by the Assessing Officer in the Assessment Year 2013-14, citing clause (ii) to sub-section (4) to Section 10AA of the Act. 4. The issue and question raised by the Revenue in this appeal relates to satisfaction of conditions m....
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....f the Act has referred to the 'unit' of the assessee as a person eligible and entitled to exemption. Each unit in the SEZ must meet the conditions specified in clauses (i) to (iii) of sub-section (4) to Section 10AA of the Act. In case there are multiple units in the SEZ, each unit would, on satisfaction of the conditions, be entitled to exemption. Thus, the eligibility requirements in clauses are unit specific and not, unless so stipulated, assessee specific. 7. There is no dispute that the respondent-assessee fulfils the conditions in clauses (i) and (iii) of sub-section (4) of Section 10AA of the Act. We have to therefore examine whether the respondent-assessee satisfies the condition stipulated in clause (ii) to sub-section 4 of Sectio....
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....EZ is not created by "splitting up" or "reconstruction" of the existing business. The restriction given in the second clause is not to deny any benefit to new unit being set up in the SEZ. Income earned by the new unit on satisfaction of the statutory conditions is exempt under Section 10AA, notwithstanding that the assessee, who has set up the new unit, had availed of benefit under Section 10A of the Act. 9. Impugned order has referred to the decision of the Delhi High Court in Commissioner of Income Tax vs. Heartland Delhi Transcription Services Pvt. Ltd. (2014) 366 ITR 523 (Delhi) wherein interpreting an identical provision in Section 10B of the Act, it was observed that the objection under Clause (ii) should be taken in the first year ....
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....of clause (ii) to section 10B(2). The undertaking, of course meet the requirements and fulfil the condition that it manufactures or produces articles, things or computer software during the assessment year. The proviso equally supports the said interpretation as it also refers to the date of formation of the undertaking, for seeking benefit under Section 10B(1). The requirements under clauses (ii) and (iii) in this manner do not relate to the subsequent period, i.e. post or after formation." 10. An earlier decision of the Delhi High Court in Commissioner of Income Tax vs. Tata Communications Internet Services Ltd. (2012) 251 CTR 290 had interpreted sub-section (3) to Section 80IA of the Act, which bears similar language and negative stipul....
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....% Revenue from unit Growth % Total Revenue Growth % 2009-10 48,93,15,919 48,93,15,919 2010-11 64,21,36,965 31% 3,61,10,980 67,82,47,945 39% 2011-12 62,32,14,978 -3% 45,72,63,241 1166% 108,04,78,220 59% 2012-13 66,95,57,158 7% 60,88,25,616 33% 1,27,83,82,769 18% 2013-14 73,08,34,134 9% 89,68,09,135 47% 16,27,64,32,69 27% 2014-15 88,07,79,281 21% 1,24,18,87,704 38% 2,12,26,66,985 30% 2015-16 103,00,00,296 17% 1,40,43,25,578 13% 2,43,43,25,874 15% Expansion of EOU-Additional area of 21817 sq. Ft. Taken for EOU 2016-17 141,96,91,400 38% 1,23,61,22,529 -12% 2,65,58,13,929 9% There was increase in revenue from taxable business of 31%, 7%, 9%, 21%....