TaxTMI 
TaxTMI 
2019 (3) TMI 1156
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....10A of the I.T.Act. 3. The brief facts of the case are as follows: The assessee is a 100% Export Oriented Unit (EOU) located in Infopark, Kakkanad, Cochin. For the assessment year 2011-2012, the assessee had claimed deduction u/s 10B of the I.T.Act amounting to Rs. 91,80,145. In the course of assessment proceedings, the assessee had filed certificate in Form No.56F to claim deduction u/s 10A of the I.T.Act vide letter dated 04.11.2013. The Assessing Officer completed the assessment u/s 143(3) of the I.T.Act vide order dated 10.01.2014. The assessee's claim of deduction u/s 10B of the I.T.Act was denied by the Assessing Officer. The Assessing Officer held that the assessee was not eligible to the claim on the ground that it is not a 10....
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....ce under STPI. 3. The learned Commissioner of Income Tax (Appeals)-I, Kochi is also not justified to observe that the approval of the Inter Ministerial Committee (IMSC) set up for granting licences under STP1 Scheme appointed by the Central Government in exercise of the powers conferred u/s.14 of the Industries (Development & Regulation) Act, 1951 is sufficient to grant deduction u/s.10B of the Act. 4. The decision of the learned Commissioner of Income Tax (Appeals) in this regard is in misapprehension of the Explanation to section 10B of the Act, which clearly laid down the approval by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Developm....
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.... Income Tax Act,1961, "hundred per cent export-oriented undertaking" means all undertaking which has been approved as a hundred per cent export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act". The Assessee's claim for exemption u/s.lOB of the Act was on the basis of approval as 100% EOU under STPI scheme. As per the decision of Hon'ble Delhi High Court in the cases CIT v. Regency Creations Ltd. and CIT v. Valiant Communications Ltd. [(2013) 353 ITR 326 (Del)], approval under STPI scheme cannot be equated to approval as hundred per cent export-....
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....to the STPs from 1st April, 1994) superfluous. There is no reason for Parliament to amend the law, and extend benefits of Section 10A to units under STP scheme and, restrict the benefits to those commencing their operations in the year of account relevant to the Assessment year 1994-95, if a STP unit is otherwise eligible for exemption under Section 10B of the Act on the ground of its being 100 per cent EOU. In the present case, there is no notification or official document suggesting that either the Inter Ministerial Committee, or any other officer or agency was nominated to perform the duties of the Board (constituted under Section 14 of the IDR Act), for purposes of approvals under Section 10-B. Though the consideration....
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....ed along with the return of income, the provision regarding filing of audit report is only directory and not mandatory and the audit report can be filed during the course of assessment proceedings. In the instant case, the audit report was filed in the course of assessment proceedings and there is no error in granting deduction u/s 10A of the I.T.Act. In the following judicial pronouncements, it has been held that the claim of deduction on similar circumstances should be allowed by the Assessing Officer:- (i) In the case of ITO vs Device Driven (India)(P) Limited in a case where claim under l0B was denied the Hon. Cochin Bench of the Tribunal restored the matter of deduction u/s lOA of the Act before the AO with the direction to ex....