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TMI Blog2011 (10) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... as taken a decision to prefer an appeal and recover the same after enquiry - Decided in favor of the assessee - IT APPEAL NO. 462 OF 2007 - - - Dated:- 12-10-2011 - N. KUMAR AND RAVI MALIMATH, JJ. K.V. Aravind and M.V. Seshachala for the Appellant. A. Shankar and M. Lava for the Respondent. JUDGMENT 1. This is an appeal filed by the revenue challenging the order, passed by the Income Tax Appellate Tribunal, Bangalore Bench-B, upholding the order passed by the Commissioner of Income Tax (Appeals) who held that the assessee is entitled to the benefit of the extended period of ten consecutive years under Section 10B of the Act though prior to coming into force of the amended provision, he had the benefit of five years period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m for the remaining part of the 10 years period or the extension of the claim does not apply. According to the Assessing Authority, the assessee's case gets covered by the clause 'The undertaking shall be entitled to the deduction referred to in the sub-section only for the unexpired, period of aforesaid ten consecutive years'. The understanding of the Assessing Authority is that in the assessee's case, there was no unexpired period left because the claim has got exhausted in the assessment year 1997-98 itself, The second amendment provision, has no application. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income Tax (Appeals). The Appellate Commissioner held that there is nothing in the Act to provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the assessment year relevant to the previous year in which the said undertaking begins to manufacture. The reference in the proviso is to the unexpired period of 10 years without any qualification. It does not refer to the unexpired period of the tax holiday duration. The substituted section, being without any qualification is therefore to be held as applicable to the assessee. Therefore, it dismissed the appeal preferred by the revenue. Aggrieved by the said order, the revenue is in appeal. 4. The learned Counsel for the revenue assailing the impugned order contends that prior to the amendment the benefit of tax exemption was granted for a period of 5 years from the date of production. Admittedly, in the instant case, the assessee co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee : Provided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by application of the provisions of this section as it stood immediately before its substitution by the Act 10 of 2000, the undertaking shall be entitled to the deduction referred to in this sub-section only for the unexpired period of aforesaid ten consecutive assessment years: 7. As if is clear from the aforesaid provision, the tax benefit or tax holiday is now extended for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the previous year in which the undertaking begins to manufacture. Therefore, the object with which this amendment was introduced is to extend the benefit of tax holiday for a period of 10 consecutive years from the date of commencement of manufacture or production. Before an assessee can claim the benefit of tax holiday, the said law governing the tax holiday should be in force on the first day of the relevant year. Then only he would be entitled to the said benefit. On 01.04.1999 when the amended provision came into force by virtue of said provision the assessee would be entitled to the benefit of tax holiday for 10 consecutive years from the date of production. If the assessee already availed the benefit under the unamended provision an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with law and do net suffer from any legal infirmity, which calls for interference. No substantial question of law arises for consideration in this appeal. 10. This case brings to the fore the way in which the Income Tax Department, without a proper application of mind, are filing appeals against the orders of the Tribunal and thus, wasting the precious time of this Court and wasting the tax payer's money. Even if the Assessing Authority for want of experience or has overzealously tried to protect the interests of the revenue, which runs counter to the express provision and when the two Appellate Authorities interpret the said provision, point out the law declared by various forums and grant relief to the assessee, we fail to underst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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