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TMI Blog2012 (6) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... eld as under: "6. It is not in dispute that Section 10B prior to amendment granted a tax holiday for a period of 5 years from the date of commencement of production out of a band of 8 years. The section was amended by Income Tax (Second Amendment) Act, 1998 which came into effect from 01.04.1999. The amended provision reads as under:- "10B. Special provisions in respect of newly established hundred per cent export oriented undertakings - (1) Subject to the provisions of this section, a deduction of such profits and gains are derived by a hundred per cent export-oriented undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n order to give added thrust to exports. Clause-4 seeks to similarly extend the five year tax holiday period to ten years to the export oriented units under section 10B of the Income-tax Act." 8. From the aforesaid object behind the amendment, it is dear that the period of 5 years is extended to 10 years in order to give added thrust to exports. It is because the Parliament felt that the tax holiday of 5 years is not having the desired result and therefore, they extended the benefit of tax holiday from 5 years to 10 years. If it is a case of extension from 5 years to 10 years, the unit which had the benefit of 5 years automatically, should get the benefit of 10 years if other conditions are fulfilled. The other condition to be fulfilled is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced production in the year 1993-94. He enjoyed the benefit of 5 years from 1993-94 to 1997-98. The amended provision came into force on 1-4-1999. He is entitled to the tax holiday under the amended provision i.e. from 1999-2000, the benefit from 1999-2000, 2000-01 and 2001-02. It is for the period 2001-02, the benefit is denied. The said denial of the benefit runs canteen to the sprit of Section 10B and it would negate the object with which the amended provision was brought in. The assessee is entitled to the benefit of extension from 5 years to 10 years tax holiday as provided under the amended provision for 10 consecutive years from the date of commencement of production. In that view of the matter the order passed by the Tribunal as well ..... X X X X Extracts X X X X X X X X Extracts X X X X
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