2019 (9) TMI 406

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... this common order, for the sake of convenience. In both the A.Ys the assessee is aggrieved by the decisions of Ld CIT(A) in confirming the disallowance of deduction claimed by the assessee u/s. 10AA of the Income Tax Act, 1961. 3. The assessee is engaged in the business of manufacturing/assembling and dealing in all kind of cooling towers. The assessee filed its return of income claiming deduction u/s. 10AA of the Income Tax Act, 1961 @ 100%. It is pertinent to note that the deduction u/s 10AA of the Act is available @ 100% for the first five years and @ 50% thereafter. Accordingly, during the course of assessment proceedings, the assessee restricted its claim to @50% as the claim is being made in the 6th and 8th year(s) of commencement....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (i) Hundred per cent of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent of such profits and gains for further five assessment years and thereafter; (ii) For the next five consecutive assessment years, so much of the amount not exceeding fifty percent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the "Special Eco....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in our view, refers to the years after completion of two sets of five years, meaning thereby, from 11th year onwards. Hence the requirement of creating reserve shall commence from 11th year onwards only. Accordingly, the view expressed by the tax authorities on this issue also fails. 8. The Assessing Officer has also observed that the assessee has not shown to have complied with various conditions prescribed by the Development Commissioner. The Ld.AR submitted that approval granted by the Development Commissioner has been renewed by a letter dt.20/11/2015. Accordingly, he submitted that the Development Commissioner could not have extended approval without compliance of various conditions. The ld. AR further submitted that the claim made....