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TMI Blog2015 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... year of production. However, the date of registration as SIA and the date of commencement of the commercial production for the deduction u/s 10B of the Act are two different things and has no nexus of whatsoever. So on this basis we conclude that the year of production is 2000-01 as per the letter submitted to the Development Commissioner MEPZ and the assessee is entitled for deduction under section 10B of the Act for the present assessment year i.e., 2009-10 under consideration - Decided in favour of assessee. Disallowance under section 14A - CIT(A) deleted the addition - Held that:- The AO has invoked the rule 8D of the Act because he disallowed the claim for deduction under section 10B of the Act. So the assessee was to pay the taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Export Corpn, Ltd. Page 2 assessee conceded that he has no objection if the delay is condoned. Hence, we condone the delay of appeal and proceed to hearing the appeal. 3. The first issue raised by the Revenue in this appeal is that the Ld. CIT(A) has erred in allowing the deduction under section 10B of the Act for the assessment year 2009-10 whereas the assessment year 2008-09 was the last eligible assessment year of the ten consecutive assessments years for the claim of deduction under section 10B. 4. Briefly stated facts are that the assessee is a limited company and is into the business of export of dry flowers and dried parts of plants. The assessee is a 100% export unit duly registered by Ministry of Industry, Government of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue is in appeal before the Tribunal on the following ground of appeal:- 1. That, in the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the assessee company was eligible for deduction u/s. 10B of It Act, 1961, for this assessment year 2009-10, whereas, eligibility for deduction for ten consecutive assessment years ended with AY 2008-09 and therefore, allowance of deduction to the assessee company for A.Y 2009-10 was in contravention of the provisions of section in 10B of the IT Act, 1961. Mr. Amitabh Chowdhury, Additional CIT appearing on behalf of Revenue and Mr. I. Banerjee and Mr. S. Joshi, Ld. Authorized Representative both are appearing on behalf of assessee. The LdDR submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1997 for registering the assessee with Secretariat for Industrial Assistance(SIA for short) for availing these facilities and privileges admissible under the 100% export oriented scheme, probably, that date has been recorded by the Chartered Accountant as the year of production. However, the date of registration as SIA and the date of commencement of the commercial production for the deduction u/s 10B of the Act are two different things and has no nexus of whatsoever. So on this basis we conclude that the year of production is 2000-01 as per the letter submitted to the Development Commissioner MEPZ and the assessee is entitled for deduction under section 10B of the Act for the present assessment year i.e., 2009-10 under consideration. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10B of the Income-tax Act. In this background, there is no warrant for any disallowance under sec. 14A of the Act. Therefore, the disallowance as made by the Assessing Officer is hereby deleted. 8. Aggrieved Revenue is in appeal before us on the following ground of appeal. 2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in allowing relief to the assessee u/s. 14A of the IT Act whereas AO was correct in computing disallowance u/s. 14A of IT Act, 1961. 9. We have heard the rival parties and perused the materials available on record. The AO has invoked the rule 8D of the Act because he disallowed the claim for deduction under section 10B of the Act. So the assessee was to pay the taxes under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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