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TMI Blog2016 (6) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 10B subject to the other conditions as specified in that section. The Tribunal also followed the decision of the Hon'ble Supreme Court in the case of Bajaj Tempo Ltd vs. CIT (1992 (4) TMI 4 - SUPREME Court) to hold that section 10B being a special incentive provision should be considered liberally. This decision of the Tribunal in the case of Smt. Sudha Rani has been confirmed by the Hon'ble High Court of Andhra Pradesh [2013 (6) TMI 783 - ANDHRA PRADESH HIGH COURT] Since the Tribunal and the Hon'ble High Court have taken cognisance of the relevant provision of law as well as the CBDT instructions and also letters of the STPI, we are of the opinion that the said decision is biding on us. Further, we also find the A.Y 2007-08 is the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,67,63,185. During the assessment proceedings u/s 143(3) of the I.T. Act, the AO observed that the assessee has claimed export turnover at ₹ 3.71 crores and worked out deduction u/s 10B at ₹ 94,74,578 and the same was claimed. He observed that as per the provisions of section 10B of the Act, the deductin for an 100% EOU has to be approved by the Board appointed on behalf of the Central Govt. He observed that in the case of the assessee, the approval was given by the Development Commissioner, Visakhapatnam which should be further ratified by the Board of Approval as per section 14 of the Industries Development and the Regulation Act. The assessee was therefore, asked to furnish the copy of the approval issued by the Board of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopment Commissioner by the Board of Approvals. It was stated that an approval granted by the Development Commissioner in the case of 100% EOU will be considered valid once such an approval is ratified by the Board of Approval for the EOU scheme. He also placed reliance upon the decision of the Hon'ble Delhi High Court in the case of CIT vs. Regency Creations Ltd (2013) (353 ITR 0326). 4. The learned Counsel for the assessee, on the other hand, supported the orders of the CIT (A) and also placed on record a copy of letter dated 25.08.2011 issued by the Software Technology Parks of India-II to the assessee in response to its letter dated 2.8.2011 regarding the I.T. Department denying exemption to STP Unit, the income tax benefit u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Board of Approval have been substituted by IMSC and it has been clarified that the ratification is not required from IMS and hence the assessee cannot be denied the deductions u/s 10B of the Act. The learned Counsel for the assessee has also filed before us the copies of a number of judgments of the Hon'ble High Court of Andhra Pradesh and also the Hon'ble Gujarat High Court and decisions of the various Benches of this Tribunal holding that the assessee shall not be denied the exemption u/s 10B of the Act only for the reason that the Board of Approval has not ratified, the approval granted by the Director of STPI. He has also filed a chart to demonstrate that the assessee got the approval as a 100% EOU vide letter dated 29.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Andhra Pradesh vide order No.87 of 2013, dated 25.06.2013 and the CIT (A) has followed the said decision to grant relief to the assessee. Since the Tribunal and the Hon'ble High Court have taken cognisance of the relevant provision of law as well as the CBDT instructions and also letters of the STPI (cited supra), we are of the opinion that the said decision is biding on us. Further, we also find the A.Y 2007-08 is the first year of claim of exemption u/s 10B and the AO was required to verify the assessee s eligibility in the said year. The AO allowed the exemption u/s 10B during the assessment proceedings u/s 143(3) for both A.Ys 2007-08 and 2008-09 and Revenue has also accepted the CIT (A) finding for 2009-10 and 2010-11. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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