TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 1234
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....al held that the Assessee is not entitled to deduction under Section 10-A / 10-B of the Act. 2. The appeals have been admitted by the Coordinate Bench of this Court on 22.04.2009 on the following substantial questions of law: "T.C.A.No.206 of 2009 1.Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the addition of Rs. 1,11,07,792/- as deemed income of the assessee company under Section 41(1) of the Income Tax Act, 1961? 2.Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the assessee company is not eligible for relief in respect of the sumof Rs. 2,22,07,792/- under Section 10B of the Income Tax Act, 1961 as ame....
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....lief in respect of interest amount of Rs. 45,88,500/- under Section 10B of the Act as amended by the Finance Act, 2001 w.e.f.1.04.2001? 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that sum of Rs. 2,29,353/- being payments made by the appellant's employees in lieu of notice period are not eligible for deduction under Section 10B of the Act?" 3. The Assessee Company had offered stock option scheme to its employees in the preceding assessment years and following the SEBI guidelines and standard accounting practices, the said amount was debited to the Profit and Loss Account of the Assessee Company. The option given to the employees to convert the said stock option into equity ....
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.... the sale proceeds of the articles specified in Section 10B by way of exports. Therefore, nothing other than sale proceeds is contemplated for the relief provided under Section 10B. There must be exports; exports must be of specified goods; the consideration must be in the form of sale proceeds and actual receipts must be in convertible foreign exchange. All the above terms have to be satisfied in order to claim relief under Section 10B. Obviously, the case of the assessee does not stand to the above tests. Therefore, the first argument that the assessee that the relief under Section 10B should be given on the income of Rs. 1,11,07,792/- is dismissed. 9. The alternative contention of the ld.C.A., is that the said amount of Rs. 1,11,07,792....
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....ctivilities carried on by them or their location (in STPI/FTZ/EOU). The provision is attracted to the entire income derived from the 'business of the eligible undertaking' as contra distinguished from the provisions of Section 80 IA falling under Chapter VI A, which provides for a deduction only in respect of the income derived from/by the eligible undertakings. The use of the word "business" in the context of the grant of the relief widens the scope of such benefit encompassing all incomes generated by such business activities. 20. Such special deduction is intended as a benefit to a special class of undertakings and as stated by the Supreme Court in the case of Bajaj Tempo LTD. Vs. Commissioner of Income Tax, Bombay [(1992) 3 ....
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....activity engaged in by the assessee is export, all incomes generated by the conduct of the business of the unit would be eligible to the benefits under section 10A/10B. The orders of the authorities below are reversed and the issue answered in favour of the assssee and against the Revenue. The substantial question of law is answered in favour of the assessee and against the Revenue. The Tax Case (Appeals) are allowed. No costs." Extract from "C.I.T -Vs- Hewlett Packard Global Soft Ltd" 37. On the above legal position discussed by us, we are of the opinion that the Respondent assessee was entitled to 100% exemption or deduction under Section 10A of the Act in respect of the interest income earned by it on the deposits made by it with the....