2012 (6) TMI 803

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..... 2. The Revenue raised the following grounds of appeal: 2. The CIT(A) erred in allowing the appeal of the assessee in spite of non-compliance to the statutory obligations. 3. The CIT(A) should have confirmed the addition/ disallowance made u/s. 10B since the assessee failed to produce the Ratification by the Development Commissioner as envisaged in instruction dated 9.3.2009. 4. The CIT(A) erred in applying the decision in the case of Smt. K. Sudha Rani vs. ITO in ITA No. 1750/ Hyd/2008 when the facts of the assessee's case do not squarely fit in the facts of the above cases. 3. Brief facts of the case are that the assessee company is engaged in the business of development of Computer software and export thereof outside I .....

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..... disallowed the claim made by the assessee. 6. The learned DR submitted that for granting deduction u/s. 10B the assessee is required to be duly approved by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1957) and the rules made under that Act. According to the DR, the assessee is not duly approved by the competent authority to grant deduction u/s. 10B of the Act. As the assessee has not furnished necessary approval of the Board as required under the Act, the deduction u/s. 10B cannot be granted. 7. On the other hand, the learned AR relied on the order of the Tribunal in the case of VSN Makro Technologies Pvt. .....

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..... asonable opportunity to the assessee, and also to give a specific finding whether the assessee is entitled to deduction u/s 10A of the Act or not. The assessee may file any evidence in support of its claim for deduction before the assessing officer. We make it clear that our observations herein above shall not have any bearing on the decision of the assessing officer with regard to the merits of the claim of the assessee for deduction u/s 10A of the Act. We direct accordingly. 8. We have heard both the parties and perused the material on record. We have carefully gone through the orders of the lower authorities. In our opinion, the CIT(A) has erred in granting deduction u/s. 10B without due approval from the competent authority. Accordi .....

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