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TMI Blog2017 (1) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the Hyderabad Benches for the A.Ys. 2005-06 and 2006-07. The Ld. D.R. could not place anything on record as to why the view taken by the Hyderabad Benches was accepted by the Revenue. In fact, the Hon’ble A.P. High Court had taken note of the same and the assessee-company had continuously projected before the Assessing Officer as well as the CIT(A) that in the case of Smt. K. Sudha Rani exemption was granted under section 10B of the Act even though there was no separate approval by the Board. Under these circumstances, the Ld. D.R. ought to have obtained proper details as to why the Revenue has accepted the decision of the ITAT as otherwise the only inference possible is that the Revenue has accepted the legal position and therefore d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt turnover was ₹ 3.06 crores, out of which, deduction under section 10B was claimed at ₹ 1,35,17,323. 2.1. The Assessing Officer observed that deduction for 100% EOU has to be approved by the Board appointed on behalf of Central Government. In this case, no doubt, the approval was given by the Software Technology Park of India (in short STPI ) but to allow the claim of deduction, the assessee undertaking has to get approval as 100% EOU by the Board appointed in his behalf by the Central Government under section 14 of the Industries (Development and Regulation) Act, 1951. Since, there was no proof of obtaining approval from the Board, the assessee was called-upon to explain/furnish the evidence. In response thereto, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to exemption under section 10B of the Act since it has obtained approval from the STPI. The Assessing Officer as well as the CIT(A) rejected the claim of the assessee and in this regard reliance was heavily placed on the language used in sub-clause (iv) of Explanation-2 to Section 10B of the Act which reads as under : (iv) hundred percent export-oriented undertaking means an undertaking which has been approved as a hundred per cent export-oriented undertaking 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 1951), and the rules made under that Act. 2.2. According to the tax authorities approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sudha Rani (ITA.No.1750/Hyd/2008 dated 30.10.2009). During the course of hearing, Learned Counsel for the assessee also adverted our attention to page-90 of the paper book to submit that in the case of Smt. K. Sudha Rani the following ground was urged by the Revenue but the Tribunal observed that it is not relevant as to how the statutory obligation or authority is delegated to STPI, since it is an internal matter of the Government and once STPI approves the unit as 100% EOU it should be allowed exemption under section 10B of the Act since it is deemed to have complied with the conditions for obtaining approval from the Board. The CIT(A) erred in facts and in law in ignoring the fact that the assessee s business is not approved by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see who obtains approval from the STPI can be said to have obtained approval from the Board and in such cases exemption under section 10B is allowable. Learned Counsel for the assessee also referred to page-14 of the paper book to submit that when there are two views possible the one which is favourable to the assessee should be followed, as held by the Hon ble Supreme Court in the case of CIT vs. Vegetable Products Ltd., (1973) 88 ITR 192. He thus strongly submitted that the view taken by the Assessing Officer as well as the CIT(A) deserves to be set aside and the assessee should be permitted to claim exemption under section 10B of the Act. 4. On the other hand, the Ld. D.R. strongly relied upon the decision of the Hon ble Delhi High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble A.P. High Court had taken note of the same and the assessee-company had continuously projected before the Assessing Officer as well as the CIT(A) that in the case of Smt. K. Sudha Rani exemption was granted under section 10B of the Act even though there was no separate approval by the Board. Under these circumstances, the Ld. D.R. ought to have obtained proper details as to why the Revenue has accepted the decision of the ITAT as otherwise the only inference possible is that the Revenue has accepted the legal position and therefore did not prefer to go in further appeal. Thus, even on the principles of consistency the Revenue ought not to have preferred a further appeal even in this case. At any rate, consistent with the view ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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