TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 1026
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....ew in favour of assessee has been expressed on the issue alleged therein, while passing original order dated 08/02/19. He submitted that, ground No.5.4 was decided along with ground No. 5.1-5.3, thereby dismissing them. Only issue alleged in revenue's appeal similar with ground No. 5.4 of assessee's appeal which was allowed in favour of revenue vide order dated 08/02/19. IT(TP)A No. 249/B/2014 Ground no.5.4 3. At the outset Ld.AR submitted that Ground No.5.4 in assessee's appeal shall be taken up 1st for sake of convenience. Ld.AR submitted that ground No. 5.4 along with ground No. 5.1-5.3 was decided against assessee. He submitted that, Ground no.5.1 -5.3 was in respect of denial of R&D expenses, included in revised return for computing deduction under section 10 B of the Act. He submitted that this Tribunal in paras 23-28 discussed in detail eligibility criteria for assessee to claim deduction under section 10 B for manufacturing activity, which was the issue raised in ground No. 5.4. He submitted that, in para 29 this Tribunal expressed their opinion regarding issue in Ground 5.4 as under: "29. With respect to the ratification by the board giving effect from 31/08/04, in ou....
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....on 10 B. The 1st issue in ground No. 5.1-5.3 are in respect of denial of exemption under section 10 B relating to R&D services rendered by assessee. And, 2nd issue in ground No. 5.4 is regarding denial of exemption under section 10 B relating to manufacturing activity. 4.2. In draft assessment order, it has been recorded that original return filed by assessee for year under consideration declared net income of Rs. 5,47,46,835/- after claiming deduction under section 10B of the act amounting to Rs. 1,03,13,047/-. Subsequently, during the assessment proceedings, the net taxable income was revised wherein the claim of deduction under section 10B of the Act, amounted to Rs. 1,19,45,674/-. Ld.AO in the draft assessment order denied the entire claim of Rs. 1,19,45,674/- for following reasons: * That assessee has not been able to arrive at the correct figure of deduction to be claimed under section 10B of the Act. The AO stated that assessee has made an illegal and undue claim under section 10B of the Act; * That assessee claimed deduction under section 10B of the Act in respect of research and development services, and Ld.AO held that such income from R&D services are not eligible t....
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....d for Apotex Group and also at that the same time the R&D services were provided to this group on contract basis, the two segments cannot be considered together as to have constituted a coherent or integral whole so as to qualify for deduction of profits and gains of both the segments under section 10B of the act. We find sufficient force in the findings recorded by the AO in denying the claim for deduction under section 10 B of the act. In the result, we confirmed the action of the AO and the assessee's grounds of objections (a) to (g) are, therefore, rejected." 4.5. We therefore do not agree with objection raised by Ld.CIT DR that the issue regarding ratification of certificate by the board does not arise out of order of DRP. In fact DRP rejected assessee's ground upholding the aspect that certificate of obtained by assessee from SEZ of being 100% EOU does not amount to a certificate issued by board constituted under Industries Development and Regulation act, 1951 (IDRA). 4.6. On a detailed perusal of order dated 08/02/19, we note that discussion/analysis of issue in Ground No. 5.4 has been recorded in para 23-28 following which in para 29 (which is reproduced hereinabove) has ....
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....national Ltd (supra) is not applicable to the activities of the assessee as the assessee is doing two activities and two activities are not permissible. In view of the above the issue on section 10 B, raised by the assessee is required to be dismissed. We do so. Hence, ground numbers 5.12 5.4 raised by the assessee are dismissed." 4.8. On a joint reading of all these paragraphs, we are of opinion that this Tribunal in para.29 (reproduced hereinabove), rejects objection of Ld.AO regarding permission granted by DC only available w.e.f. financial year 2011-12. Having held so, this tribunal opined that assessee is eligible for claim under section 10B in respect of manufacturing activity. It is observed that Certificate issued by DC dated 31/08/04 has been placed at page 521 of paper book which is in continuation to certificate dated 16/04/04 placed at page 513 of paper book. Assessee thus cannot be denied the claim under section 10B in relation to manufacturing activity for year under consideration. And therefore, Ground No.5.4 stands allowed in favour of assessee. Accordingly this ground stands allowed. In the result assessee's ground stands allowed as indicated hereinabove. IT(TP....