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TMI Blog2011 (6) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... y been allowed by the CIT(A) holding the assessee to be entitled to claim deductions under Section 10B - The appeal is dismissed - ITA No.1324/2010 - - - Dated:- 3-6-2011 - MR. JUSTICE A.K. SIKRI, MR. JUSTICE M.L. MEHTA, JJ. For APPELLANT: Ms.Prem Lata Bansal, Sr. Advocate with Mr.Ruchir Bhatia, Advocate For RESPONDENT: Mr.Rajat Navet, Advocate M.L. MEHTA, J. 1. The Revenue has preferred this appeal against the judgment dated 21st July, 2009 of the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal ). Vide the impugned judgment, the Tribunal disallowed the appeal of the Revenue preferred against the order of the CIT(A) in respect of the assessment year 2003-04, 2004-05 and 2005-06. The prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions under Section 10B of the Act. For arriving at this conclusion, the AO gives reason as under: To conclude it is held that the assessee does not fulfill the conditions for claiming exemptions u/s 10B since no new article or things as claimed by the assessee no article or things has been produced by the assessee during the year under consideration the assessee is getting the job work done from its sister concern i.e. CBL which is charging 50 Rs. Per peace. As no expenses has been claimed on account of labour wages and the expenses claimed on account of power and fuel are 212845/- which appears to be imaginary and which are not in consonance with the export turnover shown by assessee. The assessee was exporting the cylinder man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions made by the assessee. It is worthwhile to note that the assessee is an approved EOU unit by the NEPZ authorities which is not in dispute. Further, the assessing officer has accepted the exports made by the assessee from the CEL-II Unit as in the assessment order itself he has admitted and agreed at page 16 that the assessee is making exports which is not disputed. Now the question remains whether the assessee has manufactured or produced any article or thing within the meaning of Section 10B of the Income Tax Act, 1961. From the facts I find that there are different processes which are carried out in the EOU undertaking listed out at page 110 of the paper book. As a result of this process a raw casing becomes finished goods which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessees own case wherein the AO himself has categorically mentioned that the conditions for claim of deductions u/s 10B for CEL-II are fulfilled. Consequently the A.O. has allowed the deduction u/s 10B. Considering all the above facts and the legal case laws I am of the view that the assessee is eligible for claiming exemption u/s 10B of the Income Tax Act, 1961 for its unit No.CEL-II at Bhiwadi. As a result the claim of the assessee under Section 10B of Rs.541,40882/- (as revised by the assessee before the Assessing Officer) is allowed. Consequently the deduction under Section 80HHC while the assessing officer has allowed on the export turnover of CEL-II would be withdrawn. ITA No.1324/2010 Page 6 of 7 6. It is also noteworthy that du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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