TaxTMI 
TaxTMI 
2007 (3) TMI 287
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....port-oriented unit holding the same to be entitled to exemption under s. 10B as the unit fulfilled all the conditions as per sub-s. (2) of s. 10B without appreciating that apart from the fulfilment of basic conditions in sub-s. (2), working out of the correct profits and gains is essential for several other purposes under the aforesaid provision. Thereafter, the Department, through its ground Nos. 2 and 3 has further raised objections, which are in the nature of arguments. 4. Briefly stated facts of the case are that the assessee company carried on the same business as in earlier years, which pertains to processing and exporting meat and seafood items. The assessee has got its units located at Koregaon. Taloja and New Delhi. The AO has o....
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....s one at Koregaon and the others at Taloja and New Delhi. The unit at Koregaon is a 100 per cent export-oriented undertaking within the meaning of provisions of s. 10B of the Act. Copy of the certificate issued by the Secretariat for Industrial Approvals, Department of Industrial Policy and Promotion, Ministry of Industry, Government of India was also filed. It was further submitted that the assessee has claimed relief under s. 10B in respect of income of Koregaon unit as all the conditions mentioned in s. 10B(2) are fulfilled by Koregaon unit. It was further submitted that the AO has not brought on record any additional ground for not allowing the benefit of exemption under s. 10B in respect of income of Koregaon unit for the assessment ye....
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....at pp. 3 to 5 which are as under: 2.2 From the perusal of permission letter dt. 26th June, 1996 issued by the Government of India, Ministry of Industry, Department of Industrial Policy and Promotion, Secretariat for Industrial Approvals, EOU Section under the subject "your 100 per cent export-oriented application for permission under the 100 per cent export-oriented scheme for the manufacture of Buffalo Meat", it has been mentioned that with reference to the abovementioned application registered under SIA No. EOB, 875/95, dt. 27th Dec., 1995, Government is pleased to extend to you all the facilities and privileges admissible under the 100 per cent export-oriented scheme for the conversion of existing DIA unit into a 100 per cent EOU at M....
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....t-oriented undertakings. Sec. 10B reads as under: "Subject to the provisions of this section, any profits and gains derived by an assessee from a hundred per cent export-oriented undertaking (hereinafter in this section referred to as the undertaking) to which this section applies shall not be included in the total income of the assessee. Sub-s. (2). This section applied to any undertaking which fulfils all the following conditions, namely; (i) it manufactures or produces any article or thing, (ia) in relation to an undertaking which begins to manufacture or produce any article or thing on or after the 1st day of April, 1994, its exports of such articles and things are not less than seventy five per cent of the total sales there....
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....x under this Act shall be excluded for the purposes of computing the total income under sub-s. (1) or sub-s. (1A) of s. 80HHC.' Therefore, the AO is directed to exclude form the total income of the appellant the amount of Rs. 38,11,615 in respect of Koregaon unit which has been worked out by the appellant being the 100 per cent export-oriented unit of the appellant. This Koregaon unit is fulfilling all the conditions as per sub-s. (2) of s. 10B of the Act and therefore, it is entitled for that exemption. This ground of appeals is allowed." 8. Neither the findings of the CIT(A) could be controverted by the learned Departmental Representative nor any other material was brought on record to establish otherwise Therefore, we see no reason to....