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TMI Blog2016 (1) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... 66/Ahd/2012 - - - Dated:- 11-12-2015 - SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER For the Petitioner : Shri Dinesh Singh, Sr. D.R. For the Respondent : Shri Ankit M. Talsania, A.R ORDER PER S.S. GODARA, J.M. This Revenue s appeal for Assessment Year 2008-09, arise from order of the CIT(A)-VIII, Ahmedabad dated 30.11.2011 passed in case No.CIT(A)- VIII/ITO.Wd.4(3)/671/10-11, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . 2. The Revenue s sole substantive ground challenges the lower appellate order allowing section 10B deduction of ₹ 34,87,738/- allegedly without appreciating the fact that the assessing authority had established in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .8-10 in written submission filed by the Appellant. Vide para 2, the conditions are laid down to claim deduction u/s 10B of the Act which included the provisions of S. 10B (2)(ii) and(iii) invoked by the assessing officer in the present case. Vide para 3, it has been mentioned that various representations were received by it from various quarters, that an undertaking set up in a Domestic Tariff Area (DTA) which is subsequently approved as a 100 per cent export- oriented undertaking (EOU) by the competent authority, would be eligible for deduction under s. 10B of the Act. The Board vide para 4 has clarified that an undertaking set up in Domestic Tariff Area (DTA) and deriving profit from export of articles or things or computer software manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nthetics (P) Ltd. and E- Infochips (supra), wherein also, following the CBDT Circular No.1/2005, dated 06/01/2005 it has been held that the undertaking of the assessee shall be eligible for deduction u/s 10B of the Act from the year in which it has been converted from DTA to 100% EOU. Hence, I am of the opinion that the undertaking of the Appellant is eligible for deduction u/s 10B of the Act for the year under appeal on its conversion from DTA to 100% EOU. 2.7 The objection of assessing officer is that the undertaking of the assessee is formed by reconstruction or splitting up is concerned. The condition laid down u/s 10B(2)(ii) of the Act apparently is only to prevent claims where an undertaking is formed through a division, reconst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess, premises of the undertaking has continued to vest in the same assessee prior to and after conversion from DTA to 100% EOU. It is only earned forward of block of assets from earlier assessment year to the year under appeal and therefore the action of assessing officer in treating the same as transfer of old plant machinery to new business is not justified. Further as I held above that CBDT Circular has already clarified that on conversion from DTA to 100% EOU, the undertaking shall be eligible to claim deduction u/s 10B of the Act supports that under the circumstances, it cannot be treated as transfer of plant machineries. Further it is also not the case of the assessing officer that the Appellant had acquired old plant machinerie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled alongwith Form No.56G during the course of assessment proceedings as submitted by the Appellant vide its ;letter dated 16/12/2010 to AO. With this regard, the A.R. of the Appellant filed the statement showing deduction claimed u/s 10B of the Act in revised Form No.56G along with additional written submission dated 31/10/2011. On perusal of such details, I find that the Appellant has claimed deduction of ₹ 34,87,738/- u/s 10B for the period falling after the date of approval of 100% EOU i.e. 10/07/2007 to 31/03/2008 and that also on proportionate basis of export turnover to total turnover for this period, which is as per the scheme of the Act and CBDT Circular (supra). Therefore, I am of the opinion that the Appellant has rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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