2010 (9) TMI 1087 - AT - Income Tax

Summary

Issues involved: The judgment deals with the issues of exemption u/s.10B of the Income-tax Act for the Ahmedabad undertaking and the Pune undertaking.

Exemption u/s.10B for Ahmedabad Undertaking:
The Revenue appealed against the order of CIT(A) exempting an amount under section 10B for the Ahmedabad undertaking. The Tribunal referred to a previous decision in the assessee's own case, where it was held that an undertaking set up in the Domestic Tariff Area and subsequently approved as a 100% Export Oriented Undertaking is eligible for deduction under section 10B. The Tribunal found no ground for denial of the claim for deduction u/s.10B, as the taxpayer had registered as a 100% EOU. The Tribunal upheld the CIT(A)'s order and dismissed the Revenue's appeal.

Exemption u/s.10B for Pune Undertaking:
The Revenue also challenged the order of CIT(A) allowing exemption u/s.10B for the Pune undertaking. The CIT(A) had examined the issue and found that the unit was registered with the Prescribed Authority, STPI. The CIT(A) held that the disallowance made by the Assessing Officer was not justified and directed the AO to allow exemption u/s.10B to the Pune unit. The Tribunal confirmed the CIT(A)'s decision, noting that the unit was registered with STPI and had obtained necessary permissions and approvals. The Tribunal dismissed the Revenue's appeal.

In conclusion, the Tribunal upheld the decisions of the CIT(A) regarding exemption u/s.10B for both the Ahmedabad and Pune undertakings, and consequently, the Revenue's appeal was dismissed.