2020 (1) TMI 985

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....09-10 and 2011-12.  Both these M.Ps. were heard together and are being disposed of by way of this common order for the sake of convenience.   2. First, we take up the M.P. for Assessment Year 2009-10 i.e. M.P. No. 108/Bang/2019.  In this M.P., this is the contention raised by the assessee that the assessee's claim for deduction u/s. 10B of the IT Act with regard to manufacture activities was rejected by the AO on the ground that the Board's ratification to the permission granted by Development Commissioner is given on 18.01.2011 and therefore, the same would be effective only from Financial Year 2011-12 and hence it does not apply to Assessment Year 2009-10.  In para no. 5.2 of this M.P., it is stated by the asse....

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....rder.   4. We have considered the rival submissions.  First of all, we reproduce para no. 29 of the impugned Tribunal order which is as under.   "29. With respect to the ratification by the Board giving effect from 31.08.2004, in our view, there should not be any quarrel as the issue stands covered in, favour of the assessee by the authoritative pronouncement by the Board. In our view, initial permission is required to be granted by the DC in accordance with the Rules framed for the purpose of Section 2. Once the said permission has been granted then the ratification by the Board is merely a formality and therefore would relate back to the date of actual grant, as the assessee cannot be permitted to wait....

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....inding in para no. 29 of the Tribunal order that ratification by the Board relates back to the date of actual grant of permission.  Hence, we recall this Tribunal order for Assessment Year 2009-10 for limited purpose for deciding ground no. 5.4 of this appeal for Assessment Year 2009-10.   7. Now we take up the second M.P. filed by the assessee for Assessment Year 2011-12 in M.P. No. 109/Bang/2019.  In this M.P., this is the only contention raised that in this year, the claim of the assessee was only for deduction u/s. 10B with regard to manufacturing activities and since it is already held by the Tribunal in para 29 of the Tribunal order that Board ratification relates back to the date of actual grant by DC, this iss....