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TMI Blog2013 (8) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... violated the conditions of licence, thereby disentitling the assessee to have the benefit of deduction under Section 10B of the Act - Decided against Revenue. - TCA.Nos.371 of 2005, 1225 and 1226 of 2008 and 131 of 2006 - - - Dated:- 25-7-2013 - Chitra Venkataraman And K. B. K. Vasuki,JJ. For the Appellant : Mr. J. Narayanaswamy For the Respondent : Mr. S. Kumar JUDGMENT (Judgment of the Court was delivered by Chitra Venkataraman,J.) Tax Case (Appeal).Nos. 371 of 2005, 1225 and 1226 of 2008 are filed at the instance of the Revenue as against the order of Income Tax Appellate Tribunal for the assessment years 1995-96, 1993-94 and 1996-97 respectively. The above Tax Case Appeals were admitted on the following substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee company was recognized as 100% Export Oriented Unit (EOU) by the Government of India and started its commercial production, with effect from 4.9.1989. It is stated by the Assessing Officer that by December 1989, the assessee company became sick. Consequently, it entered into memorandum of understanding with a foreign collaborator, to work on their behalf on job work basis; with the result, the assessee started its earlier business and went ahead with the new business in the manufacture of films and export of thick film revistors, chip resistors etc. 4. It is seen from the assessment order passed for the assessment year 1994-95 that the assessee commenced commercial production on 4.9.1989. Considering the recognition that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company carried on job work in the production of carbon and metal film resistor for the foreign collaborators M/s. Rawmat Electronics (P) Limited, Singapore and M/s. Talema, Germany under a memo of understanding, as per which, the foreign collaborators were to send raw resistors as well as the plant and machinery for the job work and the assessee company was to send back the processed product. It is further seen that since its inception in December 1983, the company was incurring losses. For the assessment year 1993-94, it declared profit but again for the assessment year, it declared loss. Evidently, there was no local sale. The assessee claimed that it was a 100% EOU since 1989. It was found that the company started commercial p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment of India, Ministry of Commerce, Madras Export Processing Zone was made, wherein, it certified that M/s.Relco Private Limited, Salem was a 100% Export Oriented Unit as per the letter of Intent No. 158(88) / EO 378 (88) IL dated 30.12.88, which was subsequently converted as letter of permission No. PER (91) / EO 378 (88) dated 13.12.91 issued by the Secretariat for Industrial Approvals (SIA), Department of Industrial Development, Ministry of Industry, New Delhi for manufacture and export of (i) Thick Film Resistor network, (ii) Chip resistor and (iii) Printed Circuit Transformer, as per the terms and conditions laid therein. Green Card No. 032/ MEPZ dated 18.5.1992 was also issued by the Development Commissioner's office. On the denial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the existing business and having regard to the licence given in recognition, the Commissioner of Income Tax (Appeals) was justified in coming to the conclusion that the assessee was entitled to exemption under Section 10B of the Act. Thus, the Revenue's appeal was dismissed. As far as the assessment year 1994-95 is concerned, the said order of the Tribunal has become final. 9. As already pointed out, the present appeals preferred by the Revenue related to assessment years 1995-96, 1993-94, 1996-97 and 1997-98 respectively. The orders passed by the Commissioner as well as by the Tribunal were thus based on the order passed by the Tribunal for the assessment year 1994-95 and there are no materials placed before this Court to contend tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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