9911796707
TMI Blog2012 (8) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... uggested that there was any change in the facts warranting a different view for subsequent years. In this case for the assessment years 2000-01 and 2001-02 the relief granted u/s 10A to SEEPZ unit has not been withdrawn and there is no change in the facts which were in existence during the assessment year 2000-01 vis a vis the claim to exemption under section 10A. Therefore, it is not open to the department to deny the benefit of Section 10A for subsequent assessment years i. e. assessment years 2002-03 and 2003-04 and 2004-05 - no need to reopen the assessment - in favour of assessee. - INCOME TAX APPEAL NO. 1150 OF 2010, 1200 OF 2010, 1269 OF 2010 - - - Dated:- 14-8-2012 - S.J.VAZIFDAR M.S. SANKLECHA, JJ. Mr. Vimal Gupta for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Processing Zone(SEEPZ) which commenced operation during 2000-2001. b) In respect of its unit at SEEPZ, the respondentassessee has claimed the benefit of Section 10A of the Act from assessment year 2000-2001 onwards. The Income Tax Department allowed the claim for exemption of SEEPZ unit under Section 10A for the assessment year 2000-01,2001-02 and 2002-03. However, for the assessment year 2003-04 and 2004-05 the benefit of Section 10A of the Act was not extended to the SEEPZ unit on the ground that the same was formed by splitting of the Fort unit. c) Consequent to the above, the assessment for the assessment year 2002-03 was reopened under Section 147/148 of the Act. The Assessing officer by his order dated 24/7/2007 for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent under Section-10A of SEEPZ unit was allowed in scrutiny assessment under Section 143(3) of the Act. Further, on merits, it was held that two units were functioning at different location and were functioning independently. Further, nothing has been brought on record to suggest that any plant, machinery or equipments of the existing unit was transferred to the new unit. Further there were separate books of accounts and bank accounts for both the units. The Tribunal also held that merely because the two units manufactured the same product it cannot lead to a conclusion that they are not two separate units. Thus, the grant of benefit of Section 10A of the Act was upheld. 4) Mr. Vimal Gupta, Counsel appearing for the revenue in suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly, when there is no change in the facts. Therefore, he states that once a benefit of Section 10A was extended to the respondent-assessee for the assessment year 2000-01 and 2001-02 in respect of its claim for exemption under Section-10A of the Act and the same not having been withdrawn for those years it cannot be denied in the subsequent assessment years. This is for the reason that the benefit under Section 10A of the Act is available inter alia if the unit has not been formed by splitting up or reconstruction of business already in existence. This aspect of the matter was examined while completing assessment under Section 143(3) for the assessment year 2000-01 and 2001-02 and the benefit was extended after reaching a conclusion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warranting a different view for subsequent years. In this case for the assessment years 2000-01 and 2001-02 the relief granted under Section 10A of the Act to SEEPZ unit has not been withdrawn. There is no change in the facts which were in existence during the assessment year 2000-01 vis a vis the claim to exemption under section 10A of the Act. Therefore, it is not open to the department to deny the benefit of Section 10A for subsequent assessment years i. e. assessment years 2002-03 and 2003-04 and 2004-05. Besides that, on consideration of the facts involved both the Commissioner of Income Tax (Appeals) and the Tribunal have recorded a finding of fact that the SEEPZ unit is not formed by splitting up of the first unit. 7) In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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