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TMI Blog2011 (10) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... on the profit earned from an existing old unit by terming it as a new unit for the purpose of section 10B merely because it was granted approval of conversion of the Domestic Tariff Area(DTA) Unit into Export Orient Unit (EOU), particularly ignoring the fact that the turnover from the same unit in immediately preceding year had been more than this year and that the assessee had been claiming exemption u/s. 80HHC from the same unit for several years? (B) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that conversion of DTA Unit into EOU could not be treated as Unit set up by reconstruction/ splitting up of existing Unit and thereby allowing deduction u/s.10B for a unit for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the transfer of to a new business of machinery or plant previously use for any purpose." 3. On the premise that the assessee was converted into EOU from earlier existing export unit, the Assessing Officer was of the opinion that abovementioned condition was not fulfilled. The assessee carried the issue in appeal. CIT(Appeals) allowed the appeal and granted benefit to the assessee. Thereupon Revenue approached the Tribunal. The Tribunal by impugned judgement relying on circulars of CBDT as also decision of Punjab and Haryana High Court in case of Commissioner of Income Tax v. Mahavir Spinning Mills Ltd. reported in (2008) 303 ITR 353(P&H), dismissed the appeal. Hence the present appeal. 4. Having heard learned counsel for the Revenue an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 14 of the Industries (Development and Regulation) Act, 1951, is eligible for deduction under section 10B of the Incometax Act. 5. To clarify the above position, certain illustrations are given as under : (i) Undertaking 'A' is set up in a domestic tariff area and starts manufacture or production of computer software in financial year 1999-2000 relevant to the assessment year 2000-01. It gets approval as a 100 per cent. EOU on September 10,2004 in the financial year 200405 relevant to the assessment year 2005-06. Accordingly, it shall be eligible for deduction under section 10B from the assessment year 200506. i.e. the year in which it fulfills the basic condition of being a 100 per cent. EOU. Further, the deduction shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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